How To Decorate Small Studio Apartment?

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Q: My boyfriend and I have just rented a nearly bare studio apartment, 510 sq.ft, with a rather ugly linoleum flooring and very white walls. Since we like having guests for a night, a main concern is how and where to create a separate bedroom. The shape of the flat is quite challenging for this task. Oh, and it is rented so installing a partition wall is possible, though limited (can't drill in floor and ceiling). All suggestions would be greatly appreciated!

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