A hostel inside the North Korean embassy compound in Germany has been in operation despite a German government ban on the building's commercial lease, a news report said Thursday.

The Cityhostel Berlin, which rents part of the embassy property, was taking reservations by phone and Internet on Wednesday, according to Washington-based Radio Free Asia.

"Yes, it is possible to make reservations. Rooms for two people are fully booked, and only available from July 4," RFA quoted a hostel employee as saying.

The employee also confirmed that the hostel has been operating normally, with rooms almost fully booked in June. RFA said the hostel's website showed it was nearly fully booked through November.

"The German government said last month that it would close the hostel under U.N. Security Council resolution 2321, which bans the commercial use of North Korea's overseas mission buildings, but business is normal," RFA said.

The resolution is one of several adopted by the Security Council to punish the North for its nuclear and ballistic missile tests. The ban aims to stop the flow of money that could be used to develop the weapons programs.

The embassy, which began its rental business around 2004, is estimated to earn some 40,000 euros, or $45,000, per month, RFA added. (Yonhap)