Given that hotel, there was more of a problem with her skin color than her gender. They just could say that. Having retained Gloria Allred, I'm sure she is going to get a rather nice settlement out of court.
Oh yeah, for those of you who are not from the City of Angles, this is the home of the Polo Lounge, the place the Eagles wrote Hotel California about, and if you want to make them mad, ask to book the bungalow where John Belushi died. But I stayed there a few years ago when I went down to do Coachella and see Madonna and I did lunch by the pool (a must) and the Polo Lounge in drag, no one batted an eye.