After discovering Lilah’s dead body, a grieving Wesley breaks rogue slayer Faith out of prison so she can help track down Angelus.
Meanwhile, Lorne performs a sanctuary spell to keep Angelus out of the hotel while Cordelia—secretly revealed to be the big evil controlling the Beast—confides in Connor that she is pregnant.
Wesley and Gunn discover him holding her body, drinking whatever is left of her blood; he escapes through a window, allowing the two to assume he killed her.
Downstairs, when Wesley and Gunn return to the lobby with news of Lilah's death, Lorne suggests protecting the hotel with the same magic that forbids violence at his club.
When the group realizes that Angelus could have turned Lilah into a vampire, Wesley offers to prevent her potential rising.
(The clear implication is that Faith could have escaped prison any time she liked and only remained there as part of her self-imposed redemption efforts.)
Faith tells him that she won't kill Angelus because of Angel's crucial role in her life and Wesley admits that's precisely why he chose her for the job.