With Charlie Tyrell now in residence as the first guest, the hotel is now officially open to the public. Louisa has set a high standard for herself and is relying on word of mouth among the right kind of people to bring in the clientèle. Charlie invites an attractive, but married, woman for dinner in his rooms only to have her leave when she realizes she is the only guest. He invites Louisa to join him and unexpectedly, they soon are lovers. When Charlie must leave for America, Louisa is heartbroken but she also is pregnant. At the appropriate time, she leaves the hotel with Mary in charge to go and give birth. Soon Charlie is back and completely unaware of what has been going on, tracks her down. He also has a proposition on how to care for their child
While a few of the staff know of Lottie's origins, others have set their tongues wagging about just why this young girls seems to be staying at the Bentinck. Louisa wont put up with it and sets out to end the gossip. Mary meanwhile takes an interest in her and invites her to tea with her friend Brian, the violin player. He immediately takes an interest in Lottie and grates at the constant stream of orders from Mary.
Lottie returns to the Bentinck from finishing school in Switzerland for a bit of a holiday and has her art teacher, Miss Olive Bradford, in tow. Lottie has become quite the young lady, having learned the rules of high society and losing her Yorkshire accent. The Major takes quite an interest in Miss Bradford but Louisa warns him that she is an old maid who may be out to get her hooks into him. Lottie also finds a beau, hotel guest Howard Blenkiron who takes an interest in her from their first meeting.