Authorities in Quito have launched more than 12 sanctioning proceedings this year against hostels operating without the required permits.
One of the latest cases involved a hostel in the Carcelén neighborhood in northern Quito that was shut down after investigators determined it was allegedly operating as a clandestine brothel.
Officials said the establishment presented itself as a standard lodging business but was allegedly being used for illegal sexual activities promoted through social media.
The property was located near a health center.
Investigators stated there was reportedly a financial arrangement between the manager of the establishment and the women involved, with commissions allegedly paid for each encounter.
Municipal authorities warned that businesses found operating outside the conditions of their permits can face financial penalties of approximately $2,000 under current regulations.
The recent case has renewed attention on illegal operations hidden behind authorized commercial activities in parts of the city.