There are a few ways. You can install wood panelling. You can wallpaper faux wood /veneer style. Or you can paint it faux wood. The latter 2 are possible because it's on the ceiling; far enough away to trick the eye.

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Hi, There are a number of ways in which the area under a staircase can be utilized. In case of a cramped house or space restrictions, this space can be used for providing storage, services or even a powder room as elaborated below : In case there are no space constraints and all the other areas are taken care of, the space below the stairs can be used for add ons such as a library, study, cellar or a minibar. In case there are any dogs in the house, this area serves as a spacious and compact kennel too : Apart from this, if the space is to be treated solely considering aesthetics, it can be livened up using a bit of indoor landscaping, sculptures and water body : Hope these ideas help. Do let us know what you decided to choose. All the best! Regards, RnD Atelier Nagpur

I feel partitions are not needed. You already have too much for the space. Adding a partition will shrink the space further. The simplistic solution, you do not wish to discard any furniture would be to paint all the walls in lighter pastles. And use some wall painting frames to highlight certain walls.