Continuing his efforts to take over the hotel, Charles Cabot evicts Peter from the hotel penthouse and searches the accounting records for evidence of wasteful spending. Charles's sister Jessica and family patriarch Uncle Jake align with Peter, forcing Charles to back down temporarily. With Peter sharing Christine's office and making managerial decisions that she should be making, Christine is forced to assert herself. Realizing that Peter will never give up his old office, Christine has a storeroom converted into her office. Rena Payne plots to have her young lover, Ray, murder her wealthy husband, Everett. Rena arranges to have Ray shoot Everett in her hotel room and to make it look like a robbery. Noticing that Billy carries a pistol, Rena sends Billy to her hotel room in the hope of eliminating both her husband and her lover. When Ray fails to go through with the plan, Rena is arrested. Julie is promoted to director of guest relations, and a new concierge, Elizabeth, is hired, but

Charles Cabot, half-owner of the St. Gregory Hotel, introduces Peter to Lee Jordon, who represents a resort conglomerate interested in buying the hotel. Peter resists any thought of a sale because running the hotel is the only life he wants. Lee is willing to settle for Charles's share and day-to-day participation in running the hotel. Peter obtains a bank loan to buy out Charles's share of the hotel; though Peter's offer is less than Lee's, Charles sells his share to Peter, making Peter the sole owner of the hotel. Two young married couples share a large suite for a brief vacation in San Francisco. Jonas Robinson, a nose-to-the-grindstone accountant, is married to Melissa, a frivolous fun-loving blonde; and journalist Sean Marris, a rakish bon vivant, is married to Kate, a prim, practical woman. A daytrip turns into an impulsive fling for Sean and Melissa, which draws Jonas and Kate together for a more serious affair.