Hi AnimalLover83. Welcome to TCS! I'm sure some of our other members will be along with some more advice soon.
At 4 years old your cat is an adult, but still a young adult. I wouldn't worry about him not staying in your daughters room all night. Since cats are nocturnal, he's naturally most active at night probably just has other things he wants to do while you sleep. The fact that he stays with your daughters, even a little is a good sign that he likes them, he just doesn't want to sleep at that time.
Have you tried having a set playtime with your daughters and your cat?
It might help to set aside 10-15 minutes for all of you to play with him and his favorite toy (and treats) that way your daughters get a chance to see how much fun he still is, but he doesn't have to be ready to play all of the time - he can go and do some his own things. If you're in a place where you can take him outside on a leash, maybe try that and see if he likes it. Your daughters could have a lot of fun walking the cat. 
As for sitting on the couch - some cats like it, some never do. I have one who loves to sleep on the couch with you and one who can't wait to get off if you put her up there. It depends entirely on the cat. 
Overall it doesn't sound like he's not social, just like he's growing up a bit and isn't as playful as he was when he was younger. If it seems like your cat is happy with your family, just not as active as he was when he was younger, I wouldn't recommend giving him away and getting a new kitten because any new kitten you get will eventually grow up and be less interested in play too. So, unless you're absolutely sure that he'd be happier with your sister (and that she'd be happy with him) he's probably better off with you.
I just think he will not change since this has been going on way too long!! Also, when I put him on the couch he sits for at least 2 minutes and runs and hides.. I guess he just likes to be to himself. 
