Can you remove the wallpaper? That would be a really helpful start! I answered a forum question a while back about removing wallpaper, but there are lots of methods you can research.
You can absolutely combine bohemian and chic vibes, especially if you keep a light colored palette. A beautiful macrame tapestry paired with some kind of chandelier or glittery light would look gorgeous.
Start by refreshing the bones of the room, and it sounds like you have lots of ideas and will know how to fill it!