A few quick thoughts that I think haven't been mentioned so far:
* Even though it's Greece, I believe the hotel owner/mgmt should have the good ol' American "right to refuse service to anyone." If a guest is showing himself to be irreconcilably difficult, I think the hotel should have the right to relocate him. He has the right to leave the hotel. Why shouldn't the hotel have the right to leave him?
* If we want this thread to go to 30 pages, the OP could mention that the cake was addressed to Mr. and Mr. Gupta.
* Honestly, what kind of hotel sends some one a complimentary cake anyhow? I would expect, at a minimum, a troop of guys with tasseled shoes carrying an enormous flaming cheese and roast lamb. Any less is an insult to one's SPG
GOLD status.