One of the brothels owned by accused drug trafficker Chris Lytras, 47, is based on Acland Street in St Kilda - one of Melbourne's busiest retail and tourism precincts.

Fairfax Media understands the venues, which are now the subject of a police investigation, recruit Asian students and backpackers to offer traditional massages with a range of sexual services.

Mr Lytras is facing serious drug charges after the Railway Hotel in Brunswick was raided last month and police seized large quantities of methamphetamine, cocaine and ecstasy that was allegedly sold to patrons from an upstairs office.

Mr Lytras is believed to be the co-owner of the business with partner Rong "Yoko" Zhang, who is the registered licensee with the Victorian Commission for Gambling and Liquor Regulation.

The VCGLR had previously banned Mr Lytras from holding a liquor license for 10 years after a litany of breaches at another Brunswick Hotel in 2005.

Documents obtained by Fairfax Media reveal Mr Lytras was involved in the operation of the hotel business in May 2014 while still banned, and is understood to have used Ms Zhang to conceal his role.

The pair are both linked to companies that run the illegal massage parlours in documents lodged with the Australian Securities and Investment Commission.

Mr Lytras is a director of Tokyo Milk on Acland Street and at least two other brothels in Brunswick and Richmond. The "massage parlours" are the subject of reviews by former patrons on websites that rate sex industry services around Melbourne.

Ms Zhang was a former director of Tokyo Milk until 2014 when she became the licensee for the Railway Hotel business.

Ms Zhang - who has not been charged with any offences - did not respond to repeated requests for comment.

A spokeswoman for Victoria Police would not confirm if any of the massage parlours linked to Mr Lytras were under investigation.

"Police are aware of a number of alleged illegal brothels operating on Acland Street, St Kilda, and are currently investigating matters linked to these and other premises. As the investigation is ongoing it would be inappropriate to comment further," the spokeswoman said.

Association of Adult Entertainment Industries spokesman William Albon said a man who attended Tokyo Milk on Wednesday at 4pm was offered a range of sexual services, including $65 for "hand relief" and full intercourse for $165.

Mr Albon said the venue had no planning permits in place and the brothel was unlicensed.

On Tuesday, Mr Lytras was refused bail by Magistrate Peter Reardon, who was told that alleged drug trafficking at the Railway Hotel was so flagrant, that users queued outside a second-storey office.

An undercover police operation known as Thunderstruck bought more $67,000 worth of drugs inside the venue since December last year.

Despite its links to alleged drug dealing, the Railway Hotel continues to trade.

Fairfax Media does not suggest the owners of the building housing the hotel on Albert Road in Brunswick are involved in any illegal activity.