A woman accused of running a drug lab out of a five-star hotel was found with "selfies" of her using drugs and showing off large amounts of cash, a court has heard.

The Melbourne Magistrates Court was told 25-year-old Melinda Hansen was arrested when she returned to room 103 of The Olsen hotel, South Yarra, while it was being searched by police on Friday morning.

Melinda Hansen Credit:Facebook

Senior Constable Luci Saunders told the court police found methylamphetamines, heart-shaped ecstasy tablets, drug-manufacturing equipment and instructions on how to make methylamphetamine, which is commonly known as ice.

A silver suitcase containing protective equipment was also found, along with a book detailing prices and amounts of drugs that had been sold, Senior Constable Saunders said.