If being ugly was the reason, then how did they get hired in the first place?
That’s the thing: they’re not ugly. Apparently, they weren’t tall enough to work in the revamped lounge.
Management saw them when they hired them. If the women were not receptive to tolerating boorish behavior by the boss(es) (pats on the bottom, suggestive behavior), it could be behind the dismissals (with later denial by management of its inappropriate behavior, should that be addressed). Sometimes these issues are much more complicated than they appear.