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