Bayi Hotel - Luoyang

We booked a night in the hotel over the internet. About 20 minutes after booking we got a phone call from the hotel from a woman who spoke very good English. She told us that the hotel could not accept foreign guests and recommended us a different hotel. Instead we booked a night at the International Hostel in Luoyang. We have travelled all around different parts of China and haven't experienced this rule before, so we're unsure as to whether it is a rule in Luoyang or if we've just been lucky with our previous bookings.