There is a jubilant mood at Manchester's Grand Hotel when John and Sarah Bannerman hold an extravagant party to celebrate its re-opening. However, the atmosphere soon changes when the book keeper commits suicide and confesses to defrauding the hotel out of thousands of pounds. John's brother Marcus is prepared to help the Bannerman's out of their difficult financial situation, but only if Sarah is prepared to sleep with him.

Whilst Sarah feels under-mined by Marcus's cocky attitude,she is aware that he is the Grand's best hope for survival as he is an ideas man. He sells off some slum dwellings he owns but his proposal that the resident staff be made to live outside of the hotel in order to facilitate more guest rooms is vehemently opposed with the staff threatening strike action and ultimately the idea is rejected. Instead the hotel's laundry will do the washing for other hotels and institutions in the city. Janet Brady, an unmarried, pregnant ex-employee of the Grand, indirectly made homeless by Marcus's sale, comes to the hotel for work and when Sarah can only offer to recommend her to a hostel,spits in her face.