Thanks Craigo, that is the look I was going for!
Started working on the fabric panels today. The first chore was the 3" panels on the back wall. The room will have 1", 2", and 3" panels. I figured the 3"ers would be the toughest so I jumped in head first.
I used cheap pine wood and ripped it down to the desired size and then beveled the edge. Attached everything with 2" finish nails and a screw in each end. Due to the size of these panels I also added corner bracing and a middle support bar. In the end, they are sturdy but not overly heavy. Hopefully, the fabric is on the way and maybe I can get them wrapped this weekend. I am not sure how I am going to address the outlet you can see in the picture. It is an adjustable one, but there is no way it will come out 3 inches.
Back view: Corner supports, glue and 2" nails:
The bottom woodwork provides a nice shelf for the panels to rest, so all I will need is a little velcro to keep them in place.