Yes, it is true, they are full of ladies who will sit and say nothing much of interest to you and get you to buy drinks for them for an extortionate amount. The same ladies will also go back to your home/hotel with you for a price.
Joo Chiat Road is another 'ladies of the night' experience.
However, I have stayed at the Paramount Hotel and the goings on down in the shopping centre don't affect you as a hotel guest unless you choose to go there.