Is the song "Lola" based on a true incident?

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In the book The Kinks: The Official Biography, Ray Davies says that he was inspired to write this song after the band manager Robert Wace had spent the night dancing with a transvestite. Davies said, “ I remembered an incident in a club... in his apartment Robert Wace had been dancing with this black woman, and he said, ‘I’m really on to a thing here.’ And it was okay until we left at six in the morning and then I said, ‘Have you seen the stubble?’ He said ‘Yeah,’ but he was too pissed [drunk] to care, I think. http://en.wikipedia.org/wiki/Lola_(song) May 05 10, 12:32 AM