The girl is believed to be a victim of trafficking for sexual exploitation.
All of them were taken to the Bukit Mertajam police station following the 11.30pm raid on Thursday.
The men were released after being questioned.
In the raid led by Chief Insp Salawati Saad, police seized RM3,512, condoms, antiseptic mouthwash, lubricants, towels and tissues as well notebooks recording the earnings.
The raiding party also found used condoms strewn in several hotel rooms in the operation codenamed Ops Noda/Ops Pintas.
A 39-year-old hotel caretaker who was busy counting the day’s earnings at the counter was also arrested.
He has been remanded under section 117 of the Criminal Procedure Code to facilitate police investigations.
Penang CID chief Senior Asst Comm Wan Abdullah Tuanku Said said the 16-year-old girl would be sent to a shelter home in Kuala Lumpur.
He said her case was being investigated under Section 14 of the Anti-Human Trafficking Act 2007.
He said the other four Chinese nationals, aged between 26 and 28, would be remanded for 14 days under the Immigration Act for violation of social visit passes.
ACP Wan Abdullah said initial investigations revealed that the vice syndicate had been in operation for months and could have raked in close to RM100,000 monthly with each customer charged RM200.