diff --git a/.DS_Store b/.DS_Store
new file mode 100644
index 000000000..5ebc6dbc4
Binary files /dev/null and b/.DS_Store differ
diff --git a/.gitignbore b/.gitignbore
new file mode 100644
index 000000000..e69de29bb
diff --git a/.gitignore b/.gitignore
index 5e1422c9c..c0ac3dc53 100644
--- a/.gitignore
+++ b/.gitignore
@@ -48,3 +48,4 @@ build-iPhoneSimulator/
 
 # unless supporting rvm < 1.11.0 or doing something fancy, ignore this:
 .rvmrc
+coverage
diff --git a/lib/Hotel.rb b/lib/Hotel.rb
new file mode 100644
index 000000000..1aae686d6
--- /dev/null
+++ b/lib/Hotel.rb
@@ -0,0 +1,61 @@
+require_relative "Reservation"
+
+class Hotel
+  attr_reader :reservations, :rooms
+
+  def initialize
+    @reservations = []
+    @rooms = (1..20).to_a
+  end
+
+  def make_reservation(check_in:, check_out:, room: nil)
+    if room == nil
+      room = available_rooms(check_in: check_in, check_out: check_out).first
+    end
+    if available_rooms(check_in: check_in, check_out: check_out).include?(room) == false
+      raise ArgumentError, "that room is not available"
+    end
+    reservation = Reservation.new(check_in: check_in, check_out: check_out, room: room)
+    @reservations << reservation
+  end
+
+  def list_rooms()
+    return @rooms
+  end
+
+  def reservation_by_date(date)
+    raise ArgumentError, "must pass in a Date object" if date.instance_of?(Date) == false
+    res_by_date = @reservations.select do |x|
+      x.check_in <= date && date < x.check_out
+    end
+  end
+
+  def available_rooms(check_in:, check_out:)
+    #why is it if I include check out above, it doesn't work below
+    dates = (check_in..(check_out - 1)).to_a
+    booked_rooms = []
+    dates.each do |date|
+      reservation_by_date(date).each do |res|
+        booked_rooms << res.room
+      end
+    end
+    available_rooms = (@rooms - booked_rooms)
+    return available_rooms
+  end
+
+  def reserve_available_room(check_in:, check_out:, room: nil)
+    available = available_rooms(check_in: check_in, check_out: check_out)
+    raise ArgumentError, "no available rooms" if available.length == 0
+    if room == nil
+      make_reservation(check_in: check_in, check_out: check_out, room: available.first)
+    else
+      make_reservation(check_in: check_in, check_out: check_out, room: room)
+    end
+  end
+
+  def create_hotel_block(check_in:, check_out:, block_size:, block_name:, block_discount: nil)
+    raise ArgumentError, "block cannot be larger than 5" if block_size > 5
+    available = available_rooms(check_in: check_in, check_out: check_out)
+    raise ArgumentError, "there are not enough available rooms to reserve the block" if available.length < block_size
+  end
+end
diff --git a/lib/Reservation.rb b/lib/Reservation.rb
new file mode 100644
index 000000000..d81d08a8b
--- /dev/null
+++ b/lib/Reservation.rb
@@ -0,0 +1,26 @@
+require "date"
+
+class Reservation
+  attr_reader :check_in, :check_out, :room, :block
+  attr_accessor :block_room_status
+
+  COST = 200
+  #discount actually means after discount, for example. 20% off would be .8 (100-20)
+
+  def initialize(check_in:, check_out:, room: nil, block: nil, block_room_status: :AVAILABLE, discount: 1.0)
+    raise ArgumentError, "must pass in a Date object" if check_in.instance_of?(Date) == false
+    @check_in = check_in
+    @check_out = check_out
+    raise ArgumentError, "invalid date range, check out must be after check in" if @check_out <= @check_in
+    @room = room
+    @block = block
+    status_options = [:AVAILABLE, :UNAVAILABLE]
+    raise ArgumentError, "invalid status" if status_options.include?(block_room_status) == false
+    @block_room_status = block_room_status
+    @discount = discount
+  end
+
+  def cost
+    return (@check_out - @check_in).to_i * (200 * @discount)
+  end
+end
diff --git a/refactors.txt b/refactors.txt
new file mode 100644
index 000000000..03f1bca8c
--- /dev/null
+++ b/refactors.txt
@@ -0,0 +1 @@
+I'd like to get wave 3 working. Especially clean up reservations and play with an idea I have about having a reservations class, and also a block class. 
diff --git a/spec/hotel_spec.rb b/spec/hotel_spec.rb
new file mode 100644
index 000000000..8355a0b34
--- /dev/null
+++ b/spec/hotel_spec.rb
@@ -0,0 +1,95 @@
+require_relative "spec_helper"
+
+describe "Hotel class" do
+  let (:hotel) do
+    Hotel.new
+  end
+
+  describe "initialize" do
+    it "Creates an instance of Hotel" do
+      expect(hotel).must_be_instance_of Hotel
+    end
+  end
+
+  describe "creating a reservation" do
+    it "creates an object instance of Reservation" do
+      hotel.make_reservation(check_in: Date.new(2005, 2, 2), check_out: Date.new(2005, 2, 4))
+      expect(hotel.reservations[0]).must_be_kind_of Reservation
+      expect(hotel.reservations).must_be_kind_of Array
+    end
+
+    it "returns a list of rooms" do
+      expect(hotel.list_rooms().length).must_equal 20
+    end
+
+    it "it returns reservations by date" do
+      hotel.make_reservation(check_in: Date.new(2005, 2, 2), check_out: Date.new(2005, 2, 4))
+      hotel.make_reservation(check_in: Date.new(2005, 2, 5), check_out: Date.new(2005, 2, 7))
+      hotel.make_reservation(check_in: Date.new(2005, 2, 2), check_out: Date.new(2005, 2, 4))
+      expect((hotel.reservation_by_date(Date.new(2005, 2, 3))).length).must_equal 2
+    end
+
+    it "throws argument error if not passed a Date" do
+      expect do
+        hotel.make_reservation("poop")
+      end.must_raise ArgumentError
+    end
+
+    it "throws an argument error if you book the same room for the same time" do
+      hotel.make_reservation(check_in: Date.new(2005, 2, 5), check_out: Date.new(2005, 2, 7), room: 2)
+      expect do
+        hotel.make_reservation(check_in: Date.new(2005, 2, 5), check_out: Date.new(2005, 2, 7), room: 2)
+      end.must_raise ArgumentError
+    end
+
+    it "lets you book a reservation on the same day as a checkout" do
+      hotel.make_reservation(check_in: Date.new(2005, 2, 5), check_out: Date.new(2005, 2, 7), room: 2)
+      hotel.make_reservation(check_in: Date.new(2005, 2, 7), check_out: Date.new(2005, 2, 9), room: 2)
+      expect(hotel.reservations.length).must_equal 2
+    end
+
+    it "it wont let you book a reservation on the same day before a checkout" do
+      hotel.make_reservation(check_in: Date.new(2005, 2, 5), check_out: Date.new(2005, 2, 7), room: 2)
+
+      expect do
+        hotel.make_reservation(check_in: Date.new(2005, 2), check_out: Date.new(2005, 2, 9), room: 2)
+      end.must_raise ArgumentError
+    end
+  end
+
+  describe "reserve/available room method" do
+    it "returns an array of available rooms" do
+      5.times do
+        hotel.reserve_available_room(check_in: Date.new(2005, 2, 3), check_out: Date.new(2005, 2, 9))
+      end
+      expect(hotel.available_rooms(check_in: Date.new(2005, 2, 3), check_out: Date.new(2005, 2, 9)).length).must_equal 15
+    end
+
+    it "throws an argument error if there is no available room" do
+      20.times do
+        hotel.reserve_available_room(check_in: Date.new(2005, 2, 6), check_out: Date.new(2005, 2, 8))
+      end
+
+      expect do
+        hotel.reserve_available_room(check_in: Date.new(2005, 2, 6), check_out: Date.new(2005, 2, 8))
+      end.must_raise ArgumentError
+    end
+
+    describe "it tests the block reservations" do
+      it "throws an argument error if block size is larger than 5" do
+        expect do
+          hotel.create_hotel_block(check_in: Date.new(2005, 2, 6), check_out: Date.new(2005, 2, 8), block_size: 6)
+        end.must_raise ArgumentError
+      end
+
+      it "throws an argument error if there aren't enough available rooms for block" do
+        16.times do
+          hotel.reserve_available_room(check_in: Date.new(2005, 2, 3), check_out: Date.new(2005, 2, 9))
+        end
+        expect do
+          hotel.create_hotel_block(check_in: Date.new(2005, 2, 3), check_out: Date.new(2005, 2, 9), block_size: 5, block_name: "ecc")
+        end.must_raise ArgumentError
+      end
+    end
+  end
+end
diff --git a/spec/reservation_spec.rb b/spec/reservation_spec.rb
new file mode 100644
index 000000000..8c8f826be
--- /dev/null
+++ b/spec/reservation_spec.rb
@@ -0,0 +1,32 @@
+require_relative "spec_helper"
+
+describe "Reservation" do
+  before do
+    @res = Reservation.new(check_in: Date.new(2005, 2, 2), check_out: Date.new(2005, 2, 4))
+  end
+
+  it "is an instance of Reservation" do
+    expect(@res).must_be_kind_of Reservation
+  end
+
+  it "calculates the right cost" do
+    expect(@res.cost).must_equal 400
+  end
+
+  it "throw exception with invalid date range" do
+    expect do
+      Reservation.new(check_in: Date.new(2005, 2, 2), check_out: Date.new(2005, 2, 2))
+    end.must_raise ArgumentError
+  end
+
+  it "throws argument error if not passed a Date" do
+    expect do
+      Reservation.new("poo", "poo")
+    end.must_raise ArgumentError
+  end
+
+  it "properly returns the right discount price" do
+    res = Reservation.new(check_in: Date.new(2005, 2, 2), check_out: Date.new(2005, 2, 4), room: 5, block: "block", block_room_status: :AVAILABLE, discount: 0.8)
+    expect(res.cost).must_equal 320.0
+  end
+end
diff --git a/spec/spec_helper.rb b/spec/spec_helper.rb
index 218b49458..898f26502 100644
--- a/spec/spec_helper.rb
+++ b/spec/spec_helper.rb
@@ -1,8 +1,12 @@
-# Add simplecov
-require 'minitest'
-require 'minitest/autorun'
-require 'minitest/reporters'
+require "simplecov"
+SimpleCov.start
+require "minitest"
+require "minitest/autorun"
+require "minitest/reporters"
 
 Minitest::Reporters.use! Minitest::Reporters::SpecReporter.new
 
 # Require_relative your lib files here!
+require_relative "../lib/Reservation"
+require_relative "../lib/Hotel"
+require_relative "../lib/Rooms"