Several young girls were seen in the cubicles of the brothel serving customers in bed, at the time of the swoop.
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The facility which is a restaurant on the outside, plays host to several prostitutes in the metropolis.
Ultimate FM reports that some of them were spotted in their school uniforms.
The Ghana Tourism Authority has emphasized its resolve to clamp-down on illegal hospitality companies in the country.
The brothel in Kumasi is the second of such entities to be shutdown this week after a similar joint in Bantama was closed.
Other hotels in the Region have also been closed down for failure to pay their tourism taxes.