Nick Tomasino, the son of a poor family whom Mrs. Cabot has allowed to stay at the hotel after a fire destroyed their home, befriends Donna Corry, a young woman from a wealthy family. Donna showers Nick with gifts shoplifted from the hotel's stores. When Nick tries to return a stolen gift discreetly, Peter and Billy spot him and accuse him of shoplifting. The shop-owner doesn't press charges, but notifies Nick's father. When Jonathan Corry finds a variety of stolen items in his daughter's room, Donna claims they belong to Nick. Mr. Corry relies on his instincts and tells Nick's father that Nick has been trying to protect his kleptomaniac daughter. Zan Elliott, a female playwright, invites her best friend, Eileen Weston, to her opening night in San Francisco, and reveals that she is gay. Eileen is incredulous and cannot treat Zan in the same way as in the past. Eileen spends the night with a male hotel guest, whom she cares nothing about. Feeling rejected, Zan also spends the night with

Junior hotel executive Hillary Lindamont becomes starry-eyed over Michael Robson, which depresses Mark, who has a crush on Hillary. Michael videotapes sex with Hillary and threatens to use it to accuse the hotel of running a brothel. Peter pays the ransom, but Billy picks Michael's pocket and recovers the money. Peter follows the blackmailer and punches him out. A ten-year-old street kid, Cat Locatelli, sneaks into a hotel suite and begins to live off room service. Billy catches Cat, but is sympathetic, having once been on the streets himself. A well-intentioned social worker arrives to escort Cat to a children's home in the country. Cat feels betrayed, but Billy tells him he has to grow up to become a man. Milly Toland, a permanent resident of the hotel, wants to celebrate her birthday with her socialite daughter, Louise, and lawyer son, Rob, but her children leave early, leaving only Mrs. Cabot when the time comes for Milly to cut the cake. Shocked at the indifference of Milly's chil