Both Squidward and SpongeBob are walking to work, and SpongeBob tells a story about overcooking the fries. In the meantime, Squidward realize the Krusty Krab has dramatically changed. Mr. Krabs has turned it into the Krusty Towers (Despite the fact that there's only one building.), with the original building now on top of a large tower. Mr. Krabs explains that while he was on vacation, he was shocked by his outrageously high hotel bills, tallying up to $345.00 (mostly shocked at a twenty five dollar charge for a hamburger he had), and realized how much money hotels can make. He says that the employees there lived by a code: "We shall never deny a guest even the most ridiculous request", which was on a gold plaque above a fireplace in the hotel he stayed at. A customer enters to buy a Double Krabby patty with cheese, then leaves when Mr. Krabs tells him that he must book a hotel room to order room service to eat their food. Patrick soon arrives, and becomes the hotel's first actual guest. After signing the register, which he believed was a test, Squidward carries Patrick's bags (which were full of rocks), and he tries to take the guest elevator, but Mr. Krabs stops him and explains that he must take the "employee elevator", which is in fact a staircase. Patrick then requests Squidward several more times for ridiculous reasons. Whenever Squidward got to the bottom of the hotel, Mr. Krabs told him to go back up to do something that Patrick wants. After failing to give Patrick a "bubble bath", he quits.
He walks out the door and comes back as a guest instead of an employee. He demands a room on the top floor and that Mr. Krabs to carry him to get there. Then he ordered a Krabby Patty for Mr. Krabs to eat because it had hair and toenails, for humor obviously. Also, Patrick had all the cheese which were supposed to be on that Krabby Patty. He then wanted his cookies like the ones his mother makes which Krabs resentfully had to get. Then, he wanted Mr. Krabs and SpongeBob to repaint his room only to get it back to its original state. He then wanted an indoor pool. After getting an indoor swimming pool, Patrick jumps in, and the force causes the hotel to collapse from top to bottom, just like the World Trade Center collapse after 9/11, leaving only the original Krusty Krab standing.
Patrick, SpongeBob, Squidward and Mr. Krabs luckily survive, but end up in the hospital with massive injuries. When Mr. Krabs sees the hospital fee ($15,000), he scraps the idea of a hotel and tells Squidward, SpongeBob and Patrick that they are going to medical school, much to Squidward's dismay and SpongeBob and Patrick's delight.
- Mr. Krabs rebuilds the Krusty Krab into a hotel.
- Squidward quits his job for the second time.
- This episode may have caused some controversy due to how the Krusty Tower collapses. It's similar to how the towers of the World Trade Center collapsed on, 9/11/01. However this episode wasn't removed from the air or censored/editied in any way.
- Krusty Towers ranked as the fourth most-voted SpongeBob episode on the Best Day Ever marathon, only behind Karate Island, Wishing You Well, and Dunces and Dragons as the first, second and third, respectively.
- The episode's title is a parody of "Fawlty Towers", a British sitcom.
- Patrick's drawing is an obvious reference to King Kong or Godzilla.
- Running gags: Patrick keeps on forgetting where he is, saying "This is a ______?" and Mr. Krabs receiving overpriced bills.
- This is the third time someone kept changing something until they got back were they started. the first two were "Squidward the Unfriendly Ghost" and "Welcome to the Chum Bucket".
- This episode premiered the day of the 2006 Kids Choice Awards.
- This episode was one of the episodes that were originally supposed to air during Season 3, but didn't and got remade. The other episodes were Whale of a Birthday, The Lost Mattress, Mermaid Man and Barnacle Boy VI: The Motion Picture, and Patrick SmartPants.
- This is actually the second time Squidward's mom is seen. The first was in Fools in April when she appeared in Squidward's thought bubble saying "You stink!"
- The scene when Mrs. Tentacles gasps upon seeing SpongeBob and Mr. Krabs and the scene cuts to something in a bag can scare younger viewers because they might think Mr. Krabs and SpongeBob had kidnapped Mrs. Tentacles.
- This is one of the only times Squidward is nice to SpongeBob and Patrick.
- Mr. Krabs might have stolen the gold plaque.
- Squidaward doesn't like the work on the Krusty Towers, such as his Krusty Krab work. So he wants to be a visitor on this hotel and not a worker.
- When Patrick enters the hotel, he says to Squidward: "I want a Krabby Patty and a room with cheese". That was a little wrong, caise to his dumbness. So he must to say "I want a Krabby Patty with cheese and a room".
- In this episode, Squidward doesn't like Mr. Krabs' cookies, but he like his mother's cookies. (when he was a visitor)
- Despite the episode and the building being named "The Krusty Towers ",there is only one structure.
- When SpongeBob says "How may I serve you, sir" he has no eyelashes, until when he salutes, then they appear in the remainder of the episode.
- The first clip showing Mr. Krabs saying, "That hotel was a bad idea" it showed bandages on his feet, but when he says "forget hotels" the bandages shown on the tip of his feet were gone, then when he said "pack your bags boys" the bandages were shown again.
- Squidward go stung by a jellyfish. In the next shot after he got stung, his sting suddenly disappeared.
- When Mr. Krabs first served Squidward and took him upstairs, he was wearing blue clothes. When he went back to the reception desk, Mr. Krabs was wearing a black suit. When he once again went upstairs to assist Squidward, Mr. Krabs was once again in his blue clothes.
APM Music Identification
- You're Nice - Title Card
- The Wheels of Industry - Squidward and SpongeBob see Krusty Towers for the first time
- Drama Link B - "$25 for a Hamburger!"
- The Tip Top Polka/Cliff Polka - "If they can charge that for a lousy burger, imagine how much I can charge for a lousy Krabby Patty."; "Squidward, you can take Patrick's bags up to his room..."
- Poppin' Around - "Innit beautiful?"
- Woe is Me! - Mr. Krabs mocks Squidward.
- Comic Walk - "Fine, let's go, Patrick."
- Dramatic Cue D - Squidward sees Stairs
- Spindlelegs - Patrick is introduced into his room
- On the Beach - Squidward unclogs Patrick's toilet
- Hawaiian Calypso - Squidward does a quick change into vacation gear
- Tomfoolery - Mr. Krabs carries Squidward to his room
- Wooden Bear - "Send up a dozen cookies just like mother used to make."
- The Jitters - Squidward's Mother thought that she saw Burglars
- Marching to Honolulu - "Let's go bake some cookies, boys!"