For our third baby girl, we transformed a small bonus space off our master bedroom into a sweet, neutral space for a little one to spend her first months. When we moved into this house, this room was a jacuzzi/sauna room complete with cold ceramic tile and wood paneling. Other than get rid of the hot tub, we haven't touched the space since. When we found out we were expecting, we decided this room would be great for our baby's nursery because it is right next to our bedroom and just big enough for a crib and changing table.
We painted the walls white ("Shiplap" by Magnolia Home Paint), took up the tile and laid beautiful laminate flooring. A hand-me-down crib from my mother-in-law and a simple, modern dresser/changing table, and this room was complete. I wanted a neutral, Scandinavian style in here after having two other girls with rooms full of pink. We kept all decor to a minimum and stayed with a mainly white color pallet so as not to overwhelm the already tiny space.
Now completed, this room feels nothing like a sauna, and completely perfect for our little girl.