The 'I Will Always Love You' singer, who was meant to have performed at the event, passed away in her room at the Beverly Hilton hotel on Saturday (February 11) while Davis's annual party was being prepared elsewhere in the building.
> Chaka Khan slams Clive Davis party in wake of Whitney Houston's death
The celebration was dedicated to Houston's memory and stars including Alicia Keys, Kim Kardashian, Britney Spears, Diana Ross and Kelly Rowland turned out in spite of the tragedy.
However, it has since been claimed that Houston's family, who gathered at Davis's room in the hotel after the discovery of her death, had "no idea" that the record producer intended to continue with the party.
> Whitney Houston 'to be buried next to father'
"The mood in Davis's suite was just of pure shock," The Sun quotes a US source as saying. "Bobbi Kristina was absolutely inconsolable. She was rocking back and forth on the couch, crying hysterically. Clive was already dressed in his tux and most of Whitney's family was dressed for the party.
"Whitney's aunt, Mary Jones, was absolutely stunned. She was very upset that it hadn't been cancelled."
Speaking at the event, Davis said of Houston: "I personally [feel] devastated by the loss of someone who has meant so much to me. She was full of life, looking forward for tonight. She loved music and she loved this night that celebrated music."
It was announced yesterday that Houston's private funeral service in Newark, New Jersey on Saturday (February 18) will be streamed live online.
Further coverage of the death of Whitney Houston:
> Whitney Houston 1963-2012: Reactions
> Whitney Houston 1963-2012: Obituary
> Remembering Whitney Houston: Soul II Soul's Melissa Bell blogs for Digital Spy
> New Jersey to fly flags at half mast for Whitney Houston
> Jocelyn Brown: 'Media should back off Whitney Houston's troubled past'
Watch Whitney Houston perform 'One Moment In Time' below: