The film opens with a man entering deserted hotel Grandiose all by himself. He proceeds to room 3046, and for reasons unknown, he then goes to the terrace and jumps off to the ground, killing himself.
The plot then moves to seven friends - Sam alias Samrat, Magesh, Achint, Neel, Neena, Sonia and Magi reunite after several years apart to celebrate the farewell of one of their friends, who is going abroad in order to pursue his career and fulfill his goals. As the group gathers at a local pub, they learn on the news broadcast about an abandoned hotel with a reputation of being haunted. Apparently the hotel had originally started out as a mental asylum for the criminally insane, but was almost completely destroyed in a fire, the origin of which has never been fully explained. After years of sitting in neglect, rumors began to circulate that the place was haunted. Despite this, a builder decided to refurbish the ruins into a five star hotel, but was unsuccessful and committed suicide as a result- although rumors state that he was pushed by a ghost of one of the asylum''s inmates. Intrigued by these rumors, the group decides to explore the abandoned building but soon come across strange and inexplicable occurrences, much against the warnings of the barman.
The group of seven arrive at the hotel but find that it is locked. It would be as though something is warning them to keep away, but Sam, the most hyperactive of all, remains adamant on entering. The group decide to leave, but then on hearing a radio playing somewhere, they think that there must be someone inside, and try to gain entry through the back door. They do find one and enter the hotel. As they proceed in, the door closes behind them and disappears into the wall.
The group starts to explore the hotel. with Sam leading everyone and trying to play the fool and scare everyone. Neena starts to observe strange things, but Neel brushes her claims aside. They then come across a room with a TV set on with no transmission or power, and a voice saying "welcome". Still not taken aback, they proceed to room 3406, a supposedly notorious suite room, and here Sam is killed first when he enters the bathroom on hearing someone turning on the shower. the group then flee the room in chaos and panic, too shocked to believe that Sam has been brutally killed by someone or something. But to their utter shock, they are not able to find the door through which they came in. It soon dawns on the 6 of them that they are trapped inside the hotel with no way out.
Magesh and Achint decide to go to the terrace to gain network range for their mobile phones. But on the way they are confronted by ghostly figures, and Magesh is killed by one when he tries to approach a moving wheelchair out of curiosity. Achint goes into hiding, and when Magesh and Achint don''t return, the remaining 4 go in search of them. Achint is found, and the group heads towards the terrace,when they are attached by a ghostly look