Mr. Devery falls for a visiting royal "princess" who wants to be allowed to keep her dog despite the "No Dogs Allowed" policy of the hotel. This complicates matters for Katy since it upsets the other tenants and they want the special privileges also.
Katy and Mr. Devery find a girl named April living at the hotel who ran away from a fancy boarding school so she could come to New York and become an actress, much against the will of her parents, two stars of the Broadway stage who retired years ago to a Vermont farm.
At first Olive refuses to visit her parents because she's afraid that some conniving woman will steal Delbert while she's gone. Then Katy promises to keep an eye on the dimpled dentist, much to the chagrin of Delbert.