There are many variables to consider. Such as:
How much of the bedroom will you take? Will it still be a functional bedroom?
How much will the renovation cost?
What is a 3 bedroom with 2 baths worth vs a 4 bedroom with 2 baths worth?
I would consult a local Realtor and have them run some numbers.
The next questions to ask yourself, is what do you want? and how long will you be in the house? Long term it wont make a difference to you. My guess is the cost of the renovation and the loss of the bedroom will not justify the cost of doing the renovation.