Episode 3 of "Motel California" kicks off with a nostalgic flashback. Having encountered Kang-hee at the store, Yeon-soo finds himself pondering over the dashing and trendy demeanor of all Seoul men. Determined to transform himself, he sets his sights on shedding some pounds and presenting himself to Kang-hee as a handsome suitor. The scene transitions into a montage, where Yeon-soo diligently refrains from indulging in sugary beverages and vigorously exercises to attain his weight loss goal. Throughout this journey, he meticulously preserves the purple soda can bestowed upon him by Kang-hee.
In the present, Yeon-soo places the soda can alongside a bottle of champagne in the hotel room, eagerly anticipating Kang-hee's arrival. However, his excitement turns to astonishment when she enters accompanied by Seok-kyung and informs him of their intention to transfer ownership. Recalling their earlier encounter at the convenience store, Yeon-soo is abruptly whisked out of the room by Kang-hee.
Seok-kyung insists on knowing why Kang-hee didn't disclose her recognition of him, but she responds by saying she prefers not to collaborate with individuals from her past. Seok-kyung, undeterred, extends an invitation to Kang-hee to join his hotel's design team. In a fit of anger, Kang-hee storms off and dials Chun-pil, lambasting him for spoiling their last Christmas together. Meanwhile, Yeon-soo remains in the hotel room, lost in thought. A fleeting flashback reveals him vowing to Kang-hee that he would await her return, even after she departed for Seoul.
Just as Yeon-soo prepares to depart, Kang-hee bursts in and embraces him warmly. They step inside, where Yeon-soo brews a cup of tea for her. Kang-hee inquires about the reason for his visit, and Yeon-soo responds by saying that her father had tasked him with coming. He further asserts his readiness for whatever may come. He then presents her with a necklace as a birthday gift. When she broaches the subject of a girlfriend, he gently reminds her of his promise to wait for her.
He confides that he has pondered about her throughout the entire month, yet she cautions him against playing such jokes, as they cause her heart to skip a beat. Just as he leans in closer to her, his phone interrupts with a ringing tone, revealing it to be his mother on the line. As he answers the call, Kang-hee's mind conjures up a vivid image of townsfolk, including Yeon-soo's mother, mocking her relentlessly.
Upon Yeon-soo's return, Kang-hee solemnly reminds herself of the reasons that compelled her to flee their hometown and why a future together was never feasible. He warns that if she departs now, he will not hold out for her any longer. She concurs, acknowledging that this marks the bittersweet conclusion of their ill-fated first love. With a final, lingering glimpse of the hotel room, she exits, leaving behind the memories of their past.
Yeon-soo ultimately finds himself at the police station, where his mother and her husband have been escorted following a disturbance. He inquiries if she struck her husband, but she pleadingly begs Yeon-soo to allow her to stay with him, just a little while longer.
New Year's Eve passes in a blur, and Kang-hee crosses paths with Jung-goo and Seok-kyung, deciding to collaborate with them on a professional front. However, she is astonishment when she realizes that Seok-kyung intends for her to work in motels, rather than hotels. A poignant flashback surfaces, depicting a younger Kang-hee confessing to her father that her classmates shunned her due to her motel residence.
In the present moment, she recounts the humiliation she once felt and declines the job offer. Later that evening, Kang-hee discovers a startling 50 million won deposit in her bank account. Stepping out of her goshiwon, she is met by Esther, who awaits her with an air of anticipation.
Back in their hometown, Han-woo's father is seething with anger towards Han-woo, who once held a promising position in Seoul but has now chosen to reside here, toiling away on their family farm. Chun-pil, ever the voice of reason, reminds him that having one's child close by is indeed a blessing. Elsewhere, Yeon-soo comes to a startling realization: his mother, Soon-ja, is in the process of selling his grandfather's cherished hospital. In a fit of rage, he storms into the meeting with her, her husband, and the potential buyers, abruptly announcing that the hospital is not for sale.
After their departure, Yeon-soo reveals that he had made a solemn promise to his grandfather to safeguard the hospital. Upon discovering that Soon-ja and her husband had squandered a significant portion of their wealth on an extravagant Mediterranean vacation, he insists that she move into his home, while he relocates elsewhere. With that, he arrives at a motel with his belongings and secures a room. Not long after, Han-woo also shows up, seeking refuge there. Together, they, along with Seung-eon, spend time with Chun-pil, all of them pondering over their estrangement from Kang-hee.
Meanwhile, in Seoul, Kang-hee embarks on a new venture with Jung-gu and Seok-kyung, focusing on the motel project. During a site visit, Kang-hee and Seok-kyung stumble upon Heon-yeol indulging in a passionate kiss with a woman in the elevator. Kang-hee instantly recognizes that Heon-yeol will undoubtedly spread malicious rumors about her back in their hometown.
As predicted, Heon-yeol relays to Yeon-soo and his circle that he witnessed Kang-hee with a man at a motel. However, they steadfastly stand by Kang-hee, with Yeon-soo coming close to confronting Heon-yeol with fists flying once again. Later, Han-woo counsels Yeon-soo to let go of his attachment to Kang-hee.
At work, Kang-hee recounts how Esther persuaded her to take on this new role. A nostalgic flashback unfolds, showing them sharing drinks at a bar, with Esther encouraging Kang-hee to embrace opportunities presented by those who recognize her worth. Soon after, Jung-gu extends an offer to Kang-hee, appointing her as the site manager for a specific project. Enthusiastically accepting, Kang-hee is later taken aback to realize that the motel in question is located in Hana-eup, her very own small town, where her past and present are about to collide.
Kang-hee, steadfast in her refusal, shuns Jung-goo and Seok-kyung, eventually feigning a date to escape the office. Curiosity piqued, Seok-kyung tails her and witnesses her warmly embracing Ah-reum, a sight that relieves him as it confirms her companion is not a romantic interest. Kang-hee proceeds to show Ah-reum her new abode, a perk of her recent employment at the nascent firm. She revels in recounting her role as a pioneer at HGPJ, the nascent venture birthed by her alongside Jung-goo, Seok-kyung, and Esther.
Seok-kyung, armed with gifts, arrives at her doorstep but is summarily dismissed by Kang-hee. Ah-reum, perceptive as ever, notes the unmistakable romantic leanings Seok-kyung harbors for Kang-hee. She then casually drops the bombshell that Yeon-soo is entangled in a relationship with a younger schoolmate, their union inching closer to the altar. This revelation casts a pall of disappointment over Kang-hee.
Back in the tranquil hamlet of Hana-eup, Nan-woo persuades Yeon-soo to instruct her in the art of driving. Their lesson takes a perilous turn when a vehicle approaches, evoking a panic-stricken reaction from Nan-woo that forces both cars to screech to a halt. Nan-woo, frozen in terror, is gently extricated from the driver's seat by Yeon-soo. At this precise moment, Seok-kyung and Kang-hee emerge from the other vehicle. Kang-hee's gaze locks onto Yeon-soo, her smile fleeting, before she pivots away, her heartache etched plainly on her face, as Motel California Episode 3 draws to a poignant close.
