When Angel is seen drinking Lilah's blood, it is assumed that he's killed her.  Wesley makes sure that she will not return as a vampire and then heads off for help - Slayer help.  The rest of the gang gear up to cast a protection spell inside the hotel.  Just in town, Faith gets a welcoming party from Angel and the Beast is the special guest.  After beating Faith nearly to death, Angel uses a knife created from the Beast's own bone, to destroy it.