I have 6 stay, 16 nights with SPG hotels at various locations in India starting mid-next week and noticed very interesting comment in the terms and conditions at most of my reservations (Delhi, Ahmedabad, Chennai, Jaipur):
* 12.5% or different percentage of tax calculated on the RACK rate of the room.
Usually, the rack rate and best available rates have at least 30-50% difference and this could mean a lot for taxes (especially for hotels in Delhi - very expensive - a 200 dollar rate can easily become 250 etc.).
Why does Indian hotels do this?
Another concern, as a Platinum member, is that when I get upgraded to a nice suite or rooms, the wording of the terms and conditions seems to indicate that taxes would be calculated based on the rack rate of the occupying room. Then a 200 dollar room upgraded to a very nice suite could easily become a 300 dollar room!!!
Nonetheless, this behavior is very unusual.