I agree with Cpartist"s layout and like moving the closet over as suggested by D M so that bedroom 3 has easier access to the bathroom. Do you have room to have the toilet face the tub and add a linen cabinet next to the toilet? How wide is the tub toilet area?

I'll be a contrarian. I would never knowingly rent a room with a shared bathroom in the hall. That would be a complete pass - I don't even like having to use a hallway bathroom in a sleeping situation in which I would share with friends and family because if I need to use it in the night I would have to wake up more/get more decently dressed and I hate having to shlep stuff to take a shower or perform normal grooming stuff in a bathroom. I don't have the horror of viewing a toilet from a bedroom that some houzzers seem to have. It certainly wouldn't bother me on a temporary basis. I have a master bath in my home and I can't remember the last time I actually shut the door. I don't have issues with smells or humidity but perhaps that is because my Toto washlet has a built in deodorizer AND I have an excellent Panasonic fan which runs based on ambient humidity levels. I don't generally even have condensation on shower doors or mirrors after exiting let along huge amounts of humidity wafting through my bedroom. The question really is one of economics. There is a cost to installing the bathroom and OP would need to decide whether they would make up the expense by having increased rent and/or renting it out more frequently. Certainly any prospective renter would see a picture and determine whether they wanted the ensuite with a curtain in the room or use of a bathroom in the hall. Also resale value is a red herring. At such point that OP wanted to sell it would be relatively inexpensive to convert the bathroom into a closet if having the ensuite in that room was a negative.

He doesn't want he certainly can IMO a huge waste of space in what could be a fabulous bathroom and maybe even a nice dressing room in thta IMO too big of a space . I like manageable bathrooms where I can clean it properly once a week and not take 3 hrs to do so. Do you need a tub? I really dislkke old Jacuzzi tubs they harboured all kinds of yuck in the piping so regarless of what else you do get that out of there . Step ups to get into a tub is just an accident waiting to happen I would save until I could do justice to the space you have.

thinkdesignlive - thank you and good questions: - Budget is $50k with same general footprint (so, yes, retiling primarily, plus new frameless glass shower and new tub, free standing or platform, new vanity/cabinets, new flooring). Sorry I don't have dimensions handy but we're working with a general contractor so I'm not going to be responsible for the detailed design. I will have to make design choices; thus, this original post. - Door next to shower is a toilet room which has a window out the backside so gets some natural light. You're right, the short door to toilet room is architecturally out of alignment and would look better raised to level of windows but we're probably going to have to keep as is and just try to make it inconspicuous with the focus on the shower and views. We'll be changing out all of the brass door hardware to probably matte black but we're not changing the doors (we have older style six-panel solid doors throughout the house and changing them is potentially a future, and costly, project).