I think it's at least a little of a PC issue for you...for two reasons.
1) you said it isn't
2) you referenced the diversity of your own family
Plus, I stayed at a holiday Inn express last night.
Maybe. I certainly don't mind non-PC humor in many contexts, but "hey, look at the squinty chinese people." Doesn't strike me as humorous, PC or non.
I'm really not sure this is racist... based on the fact most of us didn't even get it. IF the OP was racist, and was baiting - it didn't work. I guess the rest of us pass too.