Shortly after banker Mr. Brewster informs hotel owner Gus Borelli that his Hotel Deauville, with its posh Blue Room nightclub, is in danger of repossession, Gus discovers that attorney Austin J. Caldwell is searching for singer Ken Daniels, who has just come into a large inheritance. Hoping to use the information to his own advantage, Gus tracks Ken down to a seedy café where his agent, Mike Simms, has him singing in exchange for meals. Gus then offers Ken a job in the Blue Room, and Mike hastily accepts. Unknown to Ken, Mike had hired Austin, an out of work actor, to play a lawyer and spread the phony story of Ken's inheritance. Upon arriving at the Hotel Deauville, Mike refuses to allow Ken to work with the current Blue Room performers, who include singer Pamela Mason, as he has already promised the engagement to Alvino Rey and his orchestra. Ken offers Pam a spot singing with Rey's band, but she takes an instant dislike to Ken and refuses. Rather than quit the hotel, Pam forces Gus to pay off her contract by allowing her to work as a maid. Later, Pam overhears that Gus believes Ken is rich and when Gus tries to fire her for not being a good maid, she forces him into allowing her to waitress in the Blue Room. When Mike realizes that Pam knows about the inheritance scam, he asks Ken to be nice to her. Meanwhile, Austin turns up and demands $500 hush money from Mike, who talks him down to $100. Growing nervous about the show's opening, Gus obliquely threatens Mike, who insists that Ken will bring a large audience to the club if Gus heavily promotes the show. Later, Gus begins checking every law firm in town to find out who is handling Ken's inheritance. Meanwhile at rehearsal Ken finds himself growing attracted to Pam. He asks her to sing a duet with him and the two realize they are in love. Austin returns and presses Mike for one thousand dollars and Mike arranges for two of his henchmen to get rid of Austin, but the actor escapes and contacts Pam, who tells her about the phony inheritance. Pam, who believes Ken was part of the scam, returns to the club on opening night and tells Gus there is no inheritance. Just as Gus prepares to shoot Mike and Ken, his secretary informs him the Blue Room is filled to capacity. Meanwhile, Ken and the orchestra slip out while Austin is paid off by Gus from the evening's large proceeds. Austin admits that Ken had no knowledge of Mike's plan and while Gus holds back the restless audience, Pam chases the orchestra down to bring them back to the club, where their show is a complete success.