I have done it in a small guest bath, but keep in mind that the result will have a textured surface, so choose your wallpaper with that in mind. A paper with a random pattern and textured finish will have better results than a smooth finished paper. You also will need to be more careful finishing the seams, but it is ok to do and looked nice as long as you are ok with the texture. The difficult part was removing the paper when we decided to sell our house. That was a stinker.
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