I'm very surprised they do that at a university - I can understand hotels, but universities are supposed to be diverse and forward thinking.
As an atheist I wouldn't care (though I would not want one and it would go on the 'Bible pile' with all the ones I was given at school). However, it does seem a bit outdated to me, and has the potential to freak out, say, a new Muslim student from another country who doesn't know it's just an old tradition.