Bangalore Sweatbox

According to this blog post, Bangalore hotels are charging more for non-Indians:

I am expecting a guest tomorrow night, and I called a local hotel for a room. The lady said good luck; we have a room open tomorrow night. Great, I said and then she asked what's the nationality of your guest. I wondered how that mattered. Then I learnt that this hotel's rates are Rs 7300 a night for Indian nationals. And US $ 245 (about Rs 11000) a night for non-Indians!

What the hell? Do foreign tourists consume more towels, bath soaps and tissue rolls or what? Or does the hotel just switch off air conditioning and hot water for their Indian guests? I tried arguing, but no use. I was told they have a "policy" like that!