am assuming this is a concrete structure, when shifting service toilet to utility area, and if there are apartments above, then running extra lengths of supply/drainage lines & introducing a structural sink slab (if this is concrete) under the new location can be charged extra.. it will be easier to divide the 3rd toilet. all services will be already available. only, do check on supply & drain pipes capacity as load is increased on the same pipes which were serving one toilet earlier..

There are discrepancies between the two plans you have provided, so it is difficult to understand what has been built and what is proposed. That being said, the powder room will have more of an impact on the garage space than you are indicating, and think that will have negative impacts on the garage which you will want to avoid. The location by the dining room and stairs will also require significant changes to the plan in that area (powder room is still represented too small). The powder room adjacent to the pantry seems like a great place to put it, or in the ancillary seating space to the right of the main living seating. That seating area does not seem to have a great functional importance except to have the dining/living/side living space extend across the whole house, unless there is something happening that isn't apparent from the plan view alone.

I think wallpaper is not recommended coz the water splashing might spoil its condition. Rather I suggest you to go for a decorative tile panelling up till the width of the loft and placing a backlit round mirror to get a touch of contemporary style with black/white countertop and white and oak vanity.

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