impressed by the festivities. Jim realizes how much he misses performing. He and Louise decide to turn the farm into an inn – only open on holidays – as a way to satisfy his desire to perform while still living a quiet life most of the year, and to bring in money. Jim will write songs for each holiday, to be performed by him, Linda, and his friends, and decides to have the first performance on New Year's Eve. He plays Linda a Christmas song he wrote as an example of the type of song he might perform at the Inn ("White Christmas"). A week later, "Holiday Inn" is having its inaugural performance, and it proves popular ("Happy Holiday"). To ring in both the new year and Jim's new business, Linda performs publicly for the first time in many years ("Let's Start the New Year Right"). Ted drunkenly wanders into the inn, interrupts the song and begins dancing with her. Jim jealously punches Ted in the face, and Linda storms out. Act II Ted wakes up, hung over; Lila has left their act to marry a millionaire in Texas; he cannot remember who he danced with before passing out, but he decides she must be his new dance partner. Jim, worried that Ted will steal Linda from him, pretends not to have seen Ted's new partner. Ted sets out to dance with every woman he sees, trying to track down the right one ("You're Easy to Dance With"). Linda is humiliated by Jim and Ted's behavior; Jim apologizes and offers to start over ("Let's Take an Old-Fashioned Walk"). She agrees to give him another chance, and in time they begin a relationship. By the Valentine's Day show, Jim loves Linda, and he writes a song about her for the Inn ("Be Careful, It's My Heart"). While he sings it to her, Ted walks in, realizes Linda is the girl he seeks. Jim objects that he does not want Ted to steal Linda from him, but Ted and Linda reassure him and perform together for the first time, headlining the performance. Jim cues the band to change style and tempo several times, attempting to prevent Ted and Linda from getting too close to each other ("Cheek to Cheek"). Jim apologizes for sabotaging the number, but he does so again in the Easter show the following month by entering at the end