Should I add an extra bedroom by splitting the master in half?

[Hanna Steinbach]

I just bought a cute small (1250 sqf) cabin near Yosemite for my family and as a short term rental.

It currently has 2 bathrooms, 2 bedrooms and a large attic space with enough space for one big sleeper sofa and a small sofa. I could add an extra bedroom by adding a wall in the middle of the large bedroom downstairs. That way I'd have two rather small bedrooms that could accommodate two twins or a queen each but not much more. Instead I could make it a super nice master with a king bed and a nice sofa or daybed. Adding the wall will be cheap but I am concerned that I may loose the benefit of a bedroom that feels super nice (it also has a small propane stove) in a cabin that already feels small. I am wondering if adding a third bedroom will really pay off.