The 42 year old woman had marijuana in her possession, worth K5000 street value.
She is in the country on a tourist visa and has been in Lorengau for two weeks, according to Manus’ Provincial Police Commander, Chief Inspector David Yapu.
PPC Yapu said a team, comprising of Police, Customs and PNG Immigration officers, raided the lodge on September 22 upon complaint from the lodge management.
PPC Yapu said whilst she was in Lorengau town some of the refugees had been frequenting her room.
The woman, identified as Marie Kimberly Matousek, from Illinois USA, resides in Melbourne Australia.
She was to fly out of Manus on Sunday, September 23 when she was arrested the night before.
Matousek appeared at the Lorengau District Court on Monday, September 24 and has been allowed K500 court bail.
Her drug case was adjourned to October 26 while her American and Australian passports are in custody of the courts while police investigators work on her case.
PPC Yapu said another concern they have is over her tourist visa, and she may be put on notice as a person of interest by Immigration, pending her case.
Police investigations continue in the case.
The US Embassy in Port Moresby did not want to comment on the arrest when contacted.