This is likely a translation thing which is throwing you off. I'll try and find the original Arabic for the Hadith if you can tell me which book of Hadith you found this in.
My understanding is that you can't pray in any place that is used to expel waste because of the presence of feces or urine.
Bathhouse seems to be a less crude translation of an area used for using the toilet but I'm pretty sure if you're praying in a room that doesn't contain a toilet you should be ok.
And as always, it's best to ask a local scholar you trust. I'm not a faqih, nor is anyone here on MG. I'm just relaying what I grew up learning from my teachers.