The Liberal party has been left without a challenger in the Melbourne seat of Calwell after its candidate quit over revelations he owned a brothel but did not tell the party.

John Hsu also resigned from the Liberal party on Saturday after News Corp reported he owned Paradise Playmate, a brothel in Frankston.

The Victorian Liberal state director, Simon Frost, said the party had only learned about Hsu’s ownership of the brothel from the news report.

Hsu had “not fully declared his business interests prior to applying for endorsement as required under the party’s rules”, Frost said.

He had “resigned, with immediate effect, as an endorsed candidate of the Liberal party and … as a member of the party”.

The Liberal party will not be running an endorsed candidate in Calwell because the deadlines for nominations with the Australian electoral commission have already passed.

Calwell is a longtime safe labor seat held by Maria Vamvakinou since 2001.

Tabcorp bookies had Hsu at a remote 13 to 1 chance of winning the seat a day before the scandal broke.

His licensed brothel is “one of the most well known parlous (sic) brothel” in the area, according to its website.