I wouldn't want to sit in the alcove. It looks quite deep. What are the measurements?

You have 2 problem areas next to one another. You could simply turn #1 into a storage closet & install a very small writing surface in #2.

Can't see that there is enough height to build in a desk & a bookcase in #1.

It looks deep, narrow and it looks like there is limited head room, so I wouldn't feel comfortable sitting there on a built in bench. It looks too deep for bookcases unless you did them sideways, in which case you'd be looking at the end of the bookcase from the room which is not ideal.

Not sure, but it only looks to be 4' wide, so even putting a chaise or chair and ottoman in there would essentially be wall to wall and difficult to use.

I'm thinking it might be a place to put a cedar chest. Or even close it in and use it for extra storage. You can put a camouflaged door on it so it would appear to just be wall space.

At least your other nook has a window which makes it more welcoming.

Turn one into a storage closet and put a tall plant in the other.

It really is such an awkward space! Dimensions are 54" w x 72" deep.

I appreciate all the responses and suggestions. After playing around a bit with some cut and paste from of my inspiration photos, I've got this image that kind of gives the idea I was hoping might work, but it's a little rough.

The back wall could be built out with shelving, maybe 15" deep. Then add a deep sitting area with storage underneath. Probably put in a recessed lighting can with direction toward the shelves, and then either a small ceiling fixture for reading light or a wall mounted fixture on the left. I was hoping to make it a more cozy and less creepy reading nook.

I have considered other uses you have mentioned: desk, storage, shelves. Maybe it would be cool to make shelving toward the front of the space that would be on a door, kind of like a secret passage to storage space behind. Keep those ideas coming!

Is it a guest bedroom? But a luggage rack in it.

Yes, it is a guest/spare bedroom.

Just found this photo, which is so cute and a better representation of what I was trying to convey with the pic I posted above. I just don't know if the slanted ceiling in my room will be a problem for this type of set up.

Or maybe we could put the shelving in the back, and find a small club chair and floor lamp to put in front. It's all about the proportions.

How high is the ceiling on the short side?

That is adorable and I would have killed for it when I was a child.

I think you could do something like that, sans the bed/seating, by pulling the back forward (in other words, add a wall in there to move it forward ,and then making it a recessed bookshelf area. But it's not a good space for person-use because of the slanted wall. So, to reach a book, you'd want you guests to be able to do so w/o having to get their body/heads in there.

At its highest, the ceiling is 8' and slopes to just under 5' (59" to be exact); it definitely adds a complicating factor to the space!

I think you have to factor in what the room is used for and what you already have in the room. I can't see a guest using that nook to curl up in, assuming you have a bed in the room.

I could see a guess stashing suitcases and bags in there. Maybe a small refrigerator and a coffee pot?

A coffee station? Base cabinets, marble top, bar sink, Keurig, and a little beverage fridge for juice, creamer, bottled water. Then maybe a couple do chairs white a little table between them froward of it.