A Coalition candidate has quit after it emerged he owns a Frankston brothel called Paradise Playmates.

Taiwan-born massage therapist John Min-Chiang Hsu resigned as the Liberal Party candidate for the Victorian seat of Calwell after his ties to the brothel were revealed on Saturday.

Mr Hsu has resigned, with immediate effect, as an endorsed candidate of the Liberal Party and has resigned as a member of the Party.

The Victorian Liberal Party said in a statement it had come to its attention that Mr Hsu had "not fully declared his business interests prior to applying for endorsement as required".

"Mr Hsu has resigned, with immediate effect, as an endorsed candidate of the Liberal Party and has resigned as a member of the party," the statement said.