Starwood Hotels & Resorts reported net income of $114 million, down 15 percent year over year

. Worldwide systemwide average daily rate increased 1.6 percent to $158.54 from $156 the year before while occupancy climbed 7 percentage points to 68.8 percent. Overall group rates booked for 2010 rose 16 percent whereas corporate transient was the "primary driver of demand" and remained "robust," according to CFO Vasant Prabhu. During the quarter, midweek occupancies in Boston, Chicago and New York City topped 90 percent and rates increased roughly 5 percent--leaving room for Starwood in 2011 to increase corporate rates that fell about 20 percent since 2008, according to Prabhu. "While raising rates is not something that delights customers, this is a business that is determined by the supply-demand balance. As retail rates rise, corporate negotiated [rates] will need to rise too," said Prabhu. "In our case corporate negotiated rates are clearly one of the factors that are holding back ADR growth this year. Therefore [Starwood] would look for high single digit increases in our negotiations later this year."