I wouldn't bother with the mess of removing wallpaper. Here are some cozy/comfy guest rooms with wallpaper to inspire you. Floral wallpaper doesn't preclude a coastal feeling (see the first 2 pix below.)

Coastal Modern · More Info

Jupiter Beachfront-Entire Home · More Info

The Elms · More Info

Berkshires Estate · More Info

Lower King Street · More Info

Domino Magazine / Laura Ashley Collaboration · More Info

I think the wallpaper gives that cosy feeling you're looking for. A new light fixture, TV stand and side lamps. You almost here.

I want the room to not feel so small - so cozy probably isn't the best word. I personally hate the wallpaper so it has to go :)

Also we are having a GC do tons of work in the house, so removing it is not a big deal.

So remove it. Beef up the baseboards and paint it maybe a warm white with some blue somewhere? Accent wall? Trim work? Headboard ? Options are endless.

coastal feel? Use a blue so pale it is almost white.

One persons 'bla' is another persons 'restful'.

Sweeping the same colour up over the walls and across the the ceiling, blurs angles & lines of separation - allowing your eyes to roam freely. This adds to a sense of airiness.

Ship Channel · More Info

Heritage Manor · More Info

Cozy Beach Retreat in Corona Del Mar · More Info

I scrolled through the questions on this room and someone asked the question:

This room used:

"McKee & Company

3 years ago

We used Benjamin Moore HC-144 Palladian Blue."

I almost always start my bedroom color scheme with the bedding so if what you have there is staying then IMO not white walls . I don’t love coral but if that is a keep then I would do a really pale gray/ green walls . You need a bed with a headbord , new lighting for sure . I love either that color or some type of blue in bedrooms .I love paisley bedding it is gender neutral and has great colors to work with .

That’s so pretty thanks! none of what is in the photo is ours - the furniture shown belongs to the previous owner so it’s a blank slate

Coastal brings to mind blues, sandy tans, and sea glass colors.

Thanks all for the comments! Here are some photos of the room in it's current state. After viewing it again,it looks like the carpet is stained beyond repair so I am thinking to replace it. I got so many great ideas here! Thank you so much. Any thoughts on a new carpet/wall combo? I would love hardwood floors but those would have to be installed and too expensive.

The carpet should be in the room 10? 15? years and the paint can be redone much more often. Buy carpet, select your furniture, and THEN your paint that is available in a bazillion colors.