Depends on whether you like to paint the area above the shower. I would tile all the way to the ceiling mainly because it looks better with less maintenance. Cost is negligible. CBU is 3' wide anyway, so it will take 3 sheets with minimal cutting to fit.

 

Thanks for your advice!

 

I have 10' ceilings.
Both bathrooms are tiled to the ceiling. With a couple of contrasting color horizontal strips toward the upper portion, just to break it up a bit.

 

I tiled mine all the way up. Looks right.

 

I think all the way to the top looks best. Builder's cut costs by only going part way up. 2 ft times 100 houses adds up.

 

Maybe some others here can confirm, but when you see a soffit over a bath or shower, I was told that is simply because a bit of framing and drywall is cheaper than tile.

 

Maybe not. It may be covering pipes, ductwork, or...

 

This was a no brainer when I redid my guest bathroom. My wife wanted it to the ceiling and that is where it went no matter what I wanted to do.

 

If you can afford it, put in a shower head and handheld spray...you'll be happy you did.

 

Another question with my project: can I remove the marked stud portion and add a box for a niche?
I’m not sure if this is a load bearing stud; above the wall is the attic.

 

They make niches that fit between 16" studs

When I did my last shower I tiled all the way to the ceiling and tiled the ceiling.

 

Yes, just add a header and footer between. Interior walls don't have much weight associated with them. You can bring in the sides and add an upright cripple to each side making the niche fit. I, too, like the pre fab niches. Super easy to install and tile over.

One of many designs:

https://www.amazon.com/Redi-Niche-Single-Recessed-Shower/dp/B0062OOSLU/ref=sr_1_10?sr=8-10

 

IMO, for removing small areas of wall (one or two studs), it's sometimes easier to just assume it's load bearing and put in a header. For such small sections you don't really have to go to the trouble of supporting the wall while working on it (e.g. building a temporary wall, etc.) I have had several circumstances where I couldn't determine conclusively if a wall was load bearing, but doing the extra work of treating it like it was load bearing was far cheaper than calling in a structural engineer to determine.