Daffy Duck and Porky Pig work in the hotel business on the western frontier. At the start of the cartoon we see Daffy sweeping the floor, and exclaiming his dissatisfaction for his job ('Sweep. Sweep. Sweep. All day long. What a job for a grown duck with my IQ'). When Porky calls Daffy over, and gives him a new broom as a present, Daffy throws his hat on the floor in disgust and quits.
Daffy then proceeds to build his own hotel business directly across the way from Porky. Porky looks on, exclaiming all that because he gave Daffy a present. Daffy does everything he can to persuade business to his new establishment, hanging signs reading 'Free Lunch', 'Free TV', and 'Free Paid Stamps'. After Porky wishes Daffy luck, he spots a customer whom he hastily invites to his newly built establishment. Upon his arrival to the hotel, Daffy tries to take the gentleman's order, but is instead robbed.
Despite Daffy's many attempts at wooing customers with his free advertisements, Porky's establishment is receiving all the business. Daffy wonders what Porky has that he doesn't, so he wanders over to take a peek. Daffy sees a (live action) full establishment with dancing girls ('So that's his game. Well, I'll fight fire with fire'). Upon this revelation, we see Daffy back at his hotel dressed up as a girl. Despite his attempt, the customer's see through the phony disguise and throw tomatoes at him. (It doesn't help that Daffy's record player starts skipping.) Daffy then attempts to join forces with Porky and asks him to be partners. When Porky replies by telling Daffy he has all the business he needs, Daffy shoots himself with his own gun, and then begins his attempts at destroying Porky's business.
First, Daffy tries to drop a boulder off a cliff onto Porky's hotel. It backfires when the boulder misses, bounces, and crushes Daffy's hotel, to which we see Daffy's head change to resemble a donkey, and he makes a he-haw noise. Daffy then decides to dress up like a woman, and places explosives under the floor boards in Porky's hotel, to which they blow up and we see that Porky has struck oil. We then see that Porky's hotel is destroyed (as it was on top of the oil gusher) and closed, with a sign posted reading 'moved to a new location'. Upon the panning of the camera, we see his new and improved 5 star hotel, in which Daffy now works for Porky again. Porky offers Daffy the chance to 'clean up', and gives him his own office. When he opens the door to his office, several brooms and mops fall out of the closet, to which Daffy picks up a 'janitor' hat and puts it on, muttering, "You know, I'll bet if he put his mind to it, he could be positively obnoxious."
- The scene where Daffy tries to make a deal with Porky over being partners at the hotel (which ends with Daffy threatening to shoot Porky and ends up shooting himself with his own gun) was cut when shown on Cartoon Network (until 2004; CN has aired it uncut since), TNT and the former WB! Channel While WB used a fake black-out after the part where Daffy tries to get the gun from his holster, TNT and Cartoon Network used a fake dissolve to the next scene (where Daffy uses a boulder to crush Porky's hotel) after Daffy says, "So, are we partners?" and Porky says, "N-n-no" .
- Daffy's Inn Trouble is available, uncensored and uncut, on Looney Tunes Super Stars' Daffy Duck: Frustrated Fowl.