A Melbourne woman accused of setting up a drug laboratory at a luxury Melbourne hotel has told court that pills police allege are ecstasy are in fact mints.

Melinda Hansen was arrested on Friday after police allegedly discovered chemicals and drug precursors in her room at the five-star Olsen Hotel in South Yarra.

A police informant told the Melbourne Magistrates Court today that they seized a mask, goggles, funnels, scales and 60 grams of methamphetamine.

The court heard photos of Hansen posing with drugs and cash were found on her mobile phone.

Applying for bail, the 25-year-old said pills seized by police were actually mints from Sportsgirl.

However police said they believed Hansen was involved in drug trafficking, and further charges were expected to be laid after the chemicals found in the room were assessed.

The court was told Hansen had nowhere to live and had significant medical problems including drug addiction.

The court heard that Hansen kept detailed notes, all written in pink ink, of the drugs she sold, the amounts paid and the names of her customers.

She has been remanded in custody until Tuesday when she can reapply for bail.