Daniel's quiet rural life is comes to an abrupt end when he finds Olafur and Georg have been hired at the hotel. However, Georg's scheming is cut short when he discovers Daniel is in charge. Ólafur soon becomes the object of hotel owner Gugga's affection.

Ólafur is in pain after Gugga gets her way with him. When a fungal mushroom mistakenly finds its way into the mushroom soup, the behaviour of the staff soon becomes strange.

After reading a newspaper article featuring Bjork, Georg expresses the opinion that the Icelandic icon and musician is a freak who screeches and howls. Though when Bjork makes an unexpected visit to the hotel wishing to use the bathroom, a two faced Georg gushes over the star calling her Iceland's princess.

Sólin arrive in town to play a local gig but Ólafur, once a group insider, finds himself out in the cold. Daniel drowns his sorrows and Georg finds himself the target of a drunk Gugga's affection.

After a drunken night out Daniel finds himself the suspect as Gugga's attacker, though Georg suspiciously lends his support to Daniel, who can't remember a thing. Ólafur becomes curious as to why Daniel is supporting Georg as he takes control of the hotel.

The search is on for missing Gugga, with an increasingly fragile Daniel feeling indebted to Georg for his help. With Georg taking control over his hotel wages, Ólafur tries to raise some extra cash buy selling portable indoor saunas. Georg makes a new young friend.

Daniel's brother, an arrogant surgeon, pays a visit with his family from America. Georg spends more time with new friend Óðinn who is infatuated with him, with Ólafur becoming annoyed with Óðinn constantly hanging around at the hotel.

Georg continues to spin his lies while Daniel is plagued with guilt. After having enough of Óðinn and failing to get Georg's support, Ólafur leaves the hotel and tries his hand at sheep farming.

After Georg's promises that things would be different Ólafur returns to the hotel, but soon finds things are just the same as before. If Daniel wasn't under enough stress a heavily pregnant Ylfa arrives at the hotel claiming Daniel is the father.

After Gugga awakens from her come the police arrive and Georg's web of deceit soon catches up with him.