I have to agree.. although you are a valued member, they are giving you the current rate. I am sure you could have "negotiated" an intermediate rate (ie $225) etc. The hotel is doing you a service by giving you a room when it is normally booked... and at the going rate.

One thing, I have experienced the same issues during Christmas season at the Hilton Towers in NYC (4 years ago) the rate went from $165 negotiated to $225 or $250 a night during certain weeks. They basically have availablity at certain rates.

I would just remind you to think of the airline you fly weekly... it is a rate that moves with the market. Sometimes it goes higher or lower. My company has a negotiated discount on United.. but it is for the available rate. Also, United will offer me a seat as 1K in a sold out flight but charge me full fare. Again, a service for my loyalty...

Good luck at Starwood.. but I would honestly have just accepted the $425 rate or went home for the weekend.... Good luck!