Discovered a great painting technique for fireplaces that's easy and looks great...this is what I'd do to your fireplace http://www.lowes.com/creative-ideas/other-areas/modern-fireplace-makeover/project There are heaps of before and after photos from others who have done the project.

Great looking fireplace you have there! I agree it looks Art Deco and placed in the corner of the room, it makes me think your house is older than 50yrs. I'd guess it was built more like in the 1930 -40's. The gas heater and tiles looks like they were installed around the 60's. And the original tiles were ripped up and replaced with the ones you see. The rubble-y area on the side was I believe the original hearth. The new tiles didn't quite line up with the old. And no doubt, modern new wall to wall carpet was installed over it the same time so they didn't worry about it. If it was mine, I'd get a plumber in to disconnect the gas and pull out the heater. I'd then see if the chimney was in working order. Do you have chimneys on the roof you can see? Then replace the tiles and paint the surround. There's a good chance there is a void behind the gas heater. I'd look into making it back to a working fireplace. If not, I'd pop some nicely cut decorative looking logs into the space. You could remove it but it's lovely and the room looks large enough to put a wardrobe over the opposite wall to the bed. Lastly could be a bit of work to remove the wall as I'd expect it is masonry and need to check that it can be taken out without structural damage to the rest of the building. Often these fireplaces were paired up with one in the room behind. Do you have a corner fireplace in the next room?

My sister had a similar brick fireplace in a 1930s house. I jack-hammered up the hearth bricks (hire a large jackhammer to make light work of it) as it was a tripping hazard and all the bricks around the fireplace. I installed a black polished stone hearth, wood framed a surround and sheeted the outside. Bought a second hand Victorian arched fireplace and second hand mantlepiece. Installed a gas wood fire with fan. Once painted, it looks like the original fireplace has been restored. Before you do anything, check on the regulations for gas fireplaces in your area. It will need a flued chimney and need to be fitted by a gas technician. You will also need to have cross-ventilation in the room (floor grates or wall vents). Decide on your fireplace style and then re-design the hearth and opening based on the dimensions of the gas fireplace itself. The bricks above the opening can have battens fixed to it, then sheeted off with plasterboard to give a smooth finished wall. Decide on the look of the "chimney wall" above the fireplace and how it will be used i.e. just a similar look wall to the rest of the room, a feature wall (paint, brick, wallpaper etc), or will there be a large mirror or feature painting? Given the recess between the two brick columns, you could sheet the existing bricks to look like walls and keep the recess. In the recess, you could mount a TV or fix a large mirror or painting to fit the space which will make the room look larger and brighter. Consider dimmable lights on each side of the chimney. If you don't keep the recess between the brick pillars and keep the look of a smooth chimney wall, the hidden space between the pillars could contain wiring from the ceiling for lights and/or power points and cabling for a wall-mounted TV.

It is hard to tell from the photo but I suspect it may be a traditional cement render with layers of paint over the top. It looks like you can see the original trowel finishes in the render. This recess was possibly used for a gas or electric fireplace as the paint and render would have been damaged by a timber or coal fire. However there is only one way to find out which is to carefully remove some of the paint. Be aware that it may be a harzardous lead-based paint under the top layer of paint which looks like it could be 1980's. If you want to keep your home fairly authentic I would consider using plainer tiles rather than the heavily patterned tiles which have more of a late 1960's/1970's vibe. Sandstone or face brick were commonly used in 1950's houses around fireplaces. Best of luck, Dr Retro of Dr Retro House Calls