As an aside I've come across many hotels that have stated that it is against the law to smoke on the premises when, in fact, provision has been made in the legislation for certain bedrooms that meet requirements including segregation and ventilation to be designated as 'smoking'.
But surely if they don't have any rooms which meet the requirements then it would be against the law to smoke in that hotel? Obviously if they have smoking rooms then the sign would need modifying but in a hotel with no smoking rooms it seems accurate to me?