The luxury Ritz-Carlton resort brand is expanding in Hawai'i with a just-completed $160 million renovation of the Kapalua property and two new developments for visitors who hold an ownership stake in the properties — one at Kapalua and another on Kaua'i.

Kevin Aucello, vice president of development of Marriott International, which owns Ritz-Carlton, said the company has been wanting to expand the luxury brand in Hawai'i because of increased demand.

"We've been bullish on Hawai'i for some time," he said. "Maui is our only Ritz-Carlton hotel. And we need to provide our Ritz-Carlton customers with more choices."

Worldwide, Ritz-Carlton operates 70 hotels with more than 30 projects under development.

"There's been a lot of strength in the luxury market over the last 10 years," Aucello said. "We just need to keep up."

And that typical customer has been changing. "Ritz-Carlton has this reputation for being old rich people," Aucello said. "It's fascinating how that demographic has changed." He said the current typical guests are younger, have children and want more relaxation, fitness and spas.

Hospitality industry consultant Ron Watanabe, president of his own company, said Hawai'i is seeing an upswing in the luxury hotels.

And Marriott — which owns Ritz-Carlton — is among the companies seeing the trend toward continued success with higher-end properties. "They recognize that the luxury segment of the market has been very good for them," Watanabe said. "People who have that kind of money still travel."

Watanabe also knows that the cost of developing a hotel in Hawai'i is is so high that more expensive properties make more sense. "You need to get these very high rates to justify these costs," he said. And owners have found that it doesn't cost much less to build a budget hotel.

Joseph Toy, president of consulting firm Hospitality Advisors LLC, said the Ritz-Carlton expansion is a logical part of Marriott's overall "significant commitment to Hawai'i."

He notes a trend toward different brands developed under major hotel owners nationwide. Under Starwood, there is W, Westin and St. Regis as well as the Sheraton core brand. Marriott has Marriotts, J.W. Marriott, Ritz-Carlton, Courtyards and more.

Toy said more hotels are focusing on the higher-end hotels that can charge higher rates, both for the higher prices and the increased stability. "The luxury market tends to be a little more resilient than budget properties," he said.

When a credit crisis hits or the economy sags, "loss of consumer confidence tends to hit the lower market first," he said. "The upper segments tend to fare better in down markets. But if there is an industrywide market decline, I think all segments will be affected."

The company's current Hawai'i developments are: