Starwood just announced changes to hotel reward categories going into effect March 1. (HT: SPG Champion As with Marriott there are no new higher redemption categories being introduced (Starwood introduced category 7 back in 2007).
As I understand it hotel categories in the Starwood system are determined based on projected average daily room rates for the year ahead. When rates are expected to drop, categories fall. With rates projected to be higher than they had been projected to be the year before, categories rise.