Enter Johnny, who exclaims he is the proud owner of a hotel and would love for Tifa, Cloud, and the others to stay there. After accepting his request because you don't have much of a choice ...

When you wake up the next day, Tifa will join Cloud and Sephiroth for the journey up to Mt. Nibel. The following section is very linear, so simply follow Tifa along the path and smash the boxes ...