Taking serious note of the incident, SSP Ghaziabad Dharmendra Singh suspended two policemen posted at the Bajaria police outpost for negligence in discharge of duties.
On a tip-off, a raid was conducted at Hotel Gopal Plaza around 11:45 am and a total of 109 people belonging to different parts of the country were arrested, Singh said.
Fifty-three men, including receptionist Rajesh, and 56 women were arrested during the raid, the police official confirmed.
The hotel's owner and manager managed to escape, he added.
Local residents had complained alleging the hotel management of operating a sex racket from the premises in Bajaria, Singh said.
Bajaria police chowki In-charge and a Constable were suspended for negligence of duty, according to police.