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Maintenance is made on the lobby while the Fawltys are out, but when a misreading causes the incompetent builders to mess it up spectacularly, Basil must try to remedy the situation before Sybil finds out.
As Basil tries to raise the tone of the hotel, the aristocratic Lord Melbury comes to stay at the hotel. Basil fawns over him at every opportunity, causing himself to neglect or annoy other guests, until Polly discovers Melbury is actually a confidence trickster. Meanwhile, Sybil orders Basil to hang a picture.
Basil gets annoyed when a young, flirtatious couple start "hanky-pankying" under his nose and tries to avoid the advances of a wealthy French antique dealer. Meanwhile, misfortune conspires to put him in compromising situations whenever the couple are around.