The level of formality and size. Lounge = large, comfortable, informal. Not usually in a house, but in a hotel or restaurant.
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fivejedjonFor some speakers of BrE, the lounge used to be the 'best' room, reserved for special occasions.In American English, that would be the parlor.
AnonymousIn the US the "living room" is the largest room in a dwelling.My rec room is much larger than my living room...