Another vote for daybed. My guest bed looks like an extra-wide sofa with metal decoration on three sides during the day; take off the cushions at night and it’s a bed. There’s a folding bed underneath too.
My sofa isn’t a sofa, it’s a futon: again, room for two people. And no dreaded bars-in-the-middle.
If a person is going to be living in this room, I would not recommend a sofa bed, or really any sort of fold out, as the bed simply isn’t ever going to get folded up. You’ll spend more money for a less comfortable bed that has an unused function.
If I were going to live in a room that small, I would go for a loft arrangement, with a small couch or lazyboy underneath the bed.