A sex racket operating from a hotel in Mira Road in Thane district was busted by police, leading to the arrest of a 45-year-old woman, an official said on Monday.

Senior Inspector Sampat Patil of the police`s Social Service Branch said the raid was carried out after decoy-based verification of a tip-off, adding that two women in their mid 20s who were forced into the trade had been rescued.