A convertible furniture arrangement for a living quarters is provided. The convertible furniture arrangement includes a slide-out structure. The slide-out structure is adapted to move relative to the wall and the floor of the living quarters, and the slide-out structure includes a rear wall. A first seat assembly is carried by the slide-out structure and includes a first seat bottom. A second seat assembly is carried by the slide-out structure and spaced apart from the first seat assembly, and the second seat assembly includes a second seat bottom. A bed assembly is pivotably carried by the slide-out structure. The bed assembly includes a base and a mattress supported by the base. In a seating mode, the bed assembly is disposed between the seat assemblies and the rear wall. In a bed mode, the bed assembly overlies the seat bottoms.