This is a duet by Kenny Loggins and Clint Black. It tells the story of Loggins' climb to success.
The "new best friend" is Jim Messina (with whom Loggins reunited with a year later), and Loggins mentions "Sittin' In," "Full Sail" and "Mother Lode," which are names of Loggins & Messina albums. He also mentions "the cover of the Rolling Stone, which the duo appeared on.
The line, "Just appearing in my living room" means Loggins is a family man. He has written many songs for his kids and done 2 albums of children's songs.
Suggestion credit: Sara - Silver Spring, MD, for all above
The lyrics to "Heartbreak Hotel" were written by a steel guitar player who was once a dishwasher repairman. He was inspired by a newspaper story about a man who killed himself and left behind a note saying only, "I walk a lonely street."