I see both photos. Looks like originally that was where a small gas furnace was set up with the tile hearth to prevent any fires from starting. The change looks good.

Mate, start bidding, I would if I had the space! http://www.ebay.com.au/itm/VINTAGE-RARE-SMITH-AND-CO-CHESTERFIELD-TAN-CIGAR-2-SEAT-SOFA-LOUNGE-COUCH-SUITE/282194290880?_trksid=p2141725.c100338.m3726&_trkparms=aid%3D222007%26algo%3DSIC.MBE%26ao%3D1%26asc%3D20150313114020%26meid%3D9ae17f7c19224fd7b11591d4fb71dce7%26pid%3D100338%26rk%3D10%26rkt%3D22%26sd%3D262634019312

So I have decided against doing a feature wall on wall running alongside shower as it will make the room too dark. Instead the feature tiles will be on the wall behind the shower mixer. I am now in a quandry re the vanity wall. The floor will be light grey concrete style tiles, walls satin white and the ceiling is a raked ceiling made from baltic pine which over time has gone orangey tone. Do I get a plane white vanity, charred oak timber look (grey), another timber tone? I have decided on 1200 mm wall hung vanity but need help on colour and whether or not I put a mirrored cabinet on wall above vanity also. I originally had decided against any cabinetry above the vanity.

The less beige option, to create a slight contrast and it will suit your coastal vibe. Check this out too. https://firewarehouse.myshopify.com/