The biggest awards ceremony in music was transformed into a tribute to one of the recording industry's biggest stars last night after the sudden death of singer Whitney Houston.

The 48-year-old, most famous for her hit I Will Always Love You, was found dead in her hotel room at the Beverly Hills Hilton on Saturday afternoon ahead of a pre-Grammys party.

As her body was removed from the hotel in Los Angeles yesterday, police said there were no obvious signs of criminal intent. A post-mortem will be held.

Houston's publicist, Kristen Foster, said the cause of death was unknown although there were reports yesterday that she had drowned in the bath.

Yesterday morning Houston's daughter Bobbi Kristin Brown, 18, was taken from the same hotel to a Los Angeles hospital for unspecified medical reasons. Her condition was not known.

At the Grammys, the singer Jennifer Hudson performed a tribute to Houston, who won seven Grammys during her career.

The star released seven studio albums and had a successful film career, most notably in The Bodyguard with Kevin Costner, but in later years her drug addiction and her troubled marriage to Bobby Brown attracted unfavourable headlines.

In 2010, Houston's comeback tour was beset by cancellations. She was forced to reschedule the first three dates in Manchester and Glasgow after catching a respiratory infection. The dates eventually went ahead to mixed reviews.

Ahead of the Grammys, Houston's friends, collaborators and fellow singers from all over the world, including Elton John, Barbra Streisand, and Dolly Parton, paid tribute to her talent.

Parton, who wrote I Will Always Love You, said: "I will always be grateful and in awe of the wonderful performance she did on my song."

Elton John also paid tribute and dedicated Don't Let the Sun Go Down on Me to Houston during a performance at Caesars Palace in Las Vegas. "Thank you for giving us your talent," he said.

Barbra Streisand wrote on Twitter: "She had everything, beauty, a magnificent voice." Christina Aguilera said: "We have lost another legend."

Other tributes included a message from Houston's godmother Aretha Franklin. "It's so stunning and un-believable," she said. "My heart goes out to Cissy, her daughter Bobbi Kris, her family and Bobby [Brown]."

Houston died as she was preparing to attend the annual pre-Grammy party thrown by record producer Clive Davis, who discovered her in a nightclub in the early 1980s and who guided her career.

The party went ahead as planned and Davis told a sombre audience he was personally devastated by the loss. "She meant so much to me for so many years," he said.