The deceased has been identified as Farhana Suhail Shaikh (23), a resident of Grant Road in south Mumbai, police said.
She had come to meet Irshad Qureshi (23) in the hotel and discuss about the profits from cloth business. During the course of their talks there was a heated argument between them, an official said.
Qureshi had invested money in cloth business, which was run by Farhana but she was reluctant to share profit from the business with him, he said.
As the woman lay motionless on the floor, the accused called Mumbai Police Control Room and informed them about the incident after which police rushed to the spot, Dilip Ugale, Senior Police Inspector of Kalachowkey said.
"We have registered an offence of murder against the accused," Ugale said.
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