I would move everything into the bigger room.

I would have a dedicated guest room. This is the one room in my house that I manage to always keep clean and orderly.

I have my scrapbooking and quilting combined in one room along with all my genealogy. I don't scrapbook much anymore, but I still have all my stuff for when the mood hits me.....and it will.....sometime :) I love having all my "things" in one place. Here's a view of one wall, but it might give you an idea. The closet has tons of scrapbooking plus a two drawer file cabinet with the genealogy files.

Leave it as it is so the guest won't stay too long unless they quilt or scrap book. Sorry. LOL

No attached bathroom?? What a disaster! I'll bet they come to visit you and your home. I'd use the larger room for myself. If your guests can't visit the bathroom next door, they ought to stay in a hotel.

Take the larger room. Guests are occasional and temporary; you live there, full-time. Enjoy your home!

I agree wholeheartedly!!

We do not have a guest room or any bedrooms with en-suite bathrooms. Unless you count the RV which does have a toilet and is often used by guests.

There is a sofa bed in dh's office and guests have the choice of sleeping there or in the RV.

Mostly guests are the kids friends coming for a sleep over. They choose the RV.

It is your house and you have the right to use it as your please. There are several here who have turned dining, living, master bed, rooms and more into sewing spaces. Some have converted garages (the car can live outside) or built dedicated rooms, buildings for sewing. Do what works best for your situation.

If this were my concern, I would have the smaller room as a sewing quilting room, and the larger room as a guest room and scrapbooking area. Vice versa if your scrapbooking takes more space and time. Purge what you don't want or need anymore. Spend more quality time and space on what you do love to do. In your case it just may be both are equal. Could you put a wall unit up that has doors on it to enclose the scrapbooking items? One with a fold down desk/table area as a work space? Have a fold up table stored in a closet or under the bed. Would a closet be useful for shelving to put your scrapbooking items? I think it is important for guests to have their own bathroom. More comfortable for them and no one is intruding on anyone's personal space. That way, the other room (it is only 3 ft difference, which is a lot per se but the bathroom is a factor here) is dedicated solely to sewing and quilting. Door can be shut when guests arrive-you don't need to move anything that you are working on.
I took 2 extra bedrooms when all kids were out of the house, and made them into sewing rooms. One with fabric, cabinets, sewing machines, etc., and the other as a cutting and ironing room with storage in closet for batting etc. My other extra bedroom is an office and toy room for the grandkids. We don't usually have guests except the grandkids. So I don't feel guilty not having a place for anyone to stay. Our families and friends prefer a hotel room because they are free to come and go and visit as they wish.

I don't have a guest room personally by choice. I am here 99.9% of the time, grandchild rarely. He loves the option of an air bed and the big tv all to himself. I wouldn't sweat the small stuff, make it your own and enjoy.