Basil is delighted when a member of the aristocracy chooses to stay at the Fawlty Towers, snubbing the normal guests who frequent the hotel. What Basil does not know, however, is that the man is not a Lord but a confidence trickster who attempts to steal his collection of rare coins. As Basil's desperation to keep such an 'upstanding' guest increases, he becomes increasingly tolerant towards the man's behavior, only to have the guest arrested in a police raid on the hotel.

Basil's attempts to renovate the hotel lobby on the cheap predictably leads to disaster.

Basil Fawlty's puritanical streak comes out when a young couple he suspects of not being married tries to book a double room. He's ready to give them rooms on separate floors until Sybil steps in. It turns out that the couple know Polly but when he sees her coming out of their room - she was trying on a dress her friend had brought her for the wedding they would be attending - Basil begins to think everyone has gone mad. All that's left is for another guest, Mrs. Peignoir, to get tipsy and make a pass at him. For Manuel, it's his birthday and a night of celebrating takes its toll.

Basil Fawlty goes on the alert when he hears there are hotel inspectors in the area.

In an effort to appeal to a more discerning clientele, Basil organizes a 'Gourmet Night' - but the chef's drinking problem, and a spot of car trouble, ensure the evening quickly unravels.

A moose head to be hung, a fire drill to be conducted, and German guests are all a bit much for Basil to handle while Sybil's in hospital.