1940: Despite war and occupation, Amanda opens the doors for her first season as the new owner. Relieved to escape the German uniforms in the street, the guests return to the hotel. Madsen is the only one with an automobile, despite petrol rationing and driving bans. Mrs. Frigh is accompanied by her grown daughter, Bertha, whose head is filled with a secret infatuation, all the while Mrs. Frigh herself is more interested by the friendly gentleman they meet on the train. Everything is peaceful and there is no danger until Weyse's two boys cause problems with a couple of bathing German soldiers.

Forced to perform for the Germans in Skagen Weyse suddenly comes up with a genius idea of how to avoid it. However, the German lieutenant Kiessling is also a man of ideas. Additional pressure is put on the distressed actor when film director Gerhard Flügelhorn unexpectedly shows up to launch his anti-Nazi film project. Meanwhile, Mrs. Frigh enjoys the company of the sympathetic Johan Ramsing who is ready to offer sound advice on her business as well as on how she can handle her rebellious daughter. At the same time, Madsen is close to accepting work on the expansion of Aalborg Airport with the certainty of his wife's resistance being a passing phase.