Just a quick clarification. I have never attempted to use points at a Starwood (or any other hotel, for that matter) in India. All my stays have been for business purposes and were paid for by my company. What I am saying is that it is often very difficult for paying customers to get a room at the BLR Sheraton.
Yes, I too have used points for stays in BKK and have quite easily found rooms. But BLR and HYD don't have the plethora of 5 star hotels that BKK does, so rooms are scarce.