When the late Herbert Takami "H.T." Hayashi decided to turn a plot of marshland into the Pagoda Hotel and Floating Restaurant in 1964, some naysayers said it couldn’t be done.

Other critics argued that it just shouldn’t be done. After all, why would anyone want to stay in a hotel so far from Waikiki?

Fifty years later it’s hard to find anyone who would admit to being one of those faultfinders since the Pagoda has endured to take its place among the list of iconic island institutions.

"I think Hayashi was brilliant. He was way ahead of his time," said current Pagoda owner Peter Savio, a local developer, who bought the 359-room property from HTH Corp. in 2010. "He built a hotel that 50 years later still serves its market and has a unique themed hotel and restaurant."

Savio, who was just a teenager when the property opened at 1525 Rycroft St., recalls how much of a hit the concept was with locals.

"It was the hotel where locals stayed and the place where everyone went for entertainment," he said. "I was there with my family often. Birthdays, graduations, baby luaus, anniversaries you name it, it happened here."

Based on the hotel’s high occupancies nearly 100 percent most days Savio said that he predicts the property and brand will endure another 50 years and beyond.

"I’m hoping to fulfill Mr. Hayashi’s dream of having a Pagoda on every island," he said. "I’m making neighbor island purchases, and I’m also looking to expand the current Honolulu property. I’d like to see Pagoda Hotels in Kapolei, Kailua and Pearl City, too."

Savio is well on his way. He is actively negotiating to buy land near the Pagoda Hotel to replace the 167 units lost by the conversion of the Rycroft Terrace into affordable housing.

"We are losing half of our rooms. Demand is strong so we need to replace them," Savio said. "We are trying to buy land to develop another 200- to 300-room wing."

In the meantime he’s also attempting to purchase two properties on the outskirts of Waikiki that could join the Pagoda Collection, which also includes the White Sands Hotel and the Ewa Waikiki Hotel, which rent a large portion of their inventory as college student housing.

"We have two other hotels in mind and are putting in offers with the hope of immediately replacing the inventory that we are losing," Savio said.

He also recently acquired the commercial side of the Waiakea Villas in Hilo and is negotiating to buy about 200 residential units in the complex that could be used for short-term rentals and dorm use. He also plans to build a new six- or seven-story, 200-room Pagoda-shaped hotel tower on the site.

"We’d call it Pagoda Hilo. The project’s about 18 months to two years out," Savio said.

He is also under contract to buy the 140-room Maui Beach Hotel. The deal, which is for an undisclosed amount, is slated to close June 27. Savio said the hotel’s approximate 70 employees, represented by the International Longshore and Warehouse Union, were informed Wednesday that they would keep their jobs despite the ownership change. He is also looking at expanding that property with another Pagoda-shaped tower, which would provide about 155 more rooms. While Savio is not sure whether Maui’s zoning laws will approve the design, he said the success of Hayashi’s original Pagoda is proof that it’s a winning idea.

"It’s been very well received by the community," Savio said. "It’s beautiful. It’s relaxing. I go there almost every day to eat lunch and feed the koi."

Earlier attractions at the Pagoda like the Cest Si Bon Nightclub, where illusionist David Copperfield got his start and performers like Melveen Leed headlined, or the Lotus Room, with kimono-clad waitresses, are no longer. They’ve gone the way of $7.50-a-night room rates and $3.50 steak-and-lobster dinners.

But, those famous koi, which Hayashi brought in from Japan at considerable expense, have long been key to the Pagoda’s allure. More than 800 koi, some 20 years or older, still frolic in the 65,000-gallon pond that Hayashi took great pains to create and protect.

"Mr. Hayashi was very strict about the fish. We couldn’t have any chemicals around the pond," said Yodie Mizukami, who has worked at the Pagoda since 1989 as the executive housekeeper. "One time, we had painters painting the rooftops with water-based paint, and it rained and the pond started to turn white. Everybody reacted immediately."

She recalled that the general manager and the hotel managerjumped into the pond and corralled the fish to the other side, while other workers put sandbags to block the contaminated water.

"Today we still have a part of the pond that we call the fish hospital, and we call in the state vet for advice," Mizukami said. "When a fish dies, we do an autopsy report. We’re even getting a bio-cleaning system from Japan over the next three weeks."

Pagoda sales manager Karen Yonemoto said Savio is just as enamored of the fish as Hayashi.

"He calls them his babies," Yonemoto said. "He walks down from his office two blocks away. He comes and feeds the fish all of the time."

Bette Stafford, a Minnesota visitor who has been coming to the Pagoda for 23 years, said while the koi pond is a major plus, the people at the Pagoda and its location are the main highlights.

"It’s like our home," said the 89-year-old Stafford, who plans on returning to the property next year with her 90-year-old husband, Walt. "They keep the grounds up. It’s just perfect and everyone is so nice."

That’s because customer service was a real priority under Hayashi, who was known for his conscientious ways, Yonemoto said.

"I remember one time he called over a front desk worker to inquire about a white speck on the floor. He asked the worker, What is this?’ The worker said, I think it’s gum.’ Mr. Hayashi replied, No, it’s someone that doesn’t care,’" she said. "I’ve carried that story with me for 25 years. He wanted everyone to take care of the Pagoda home."

Mizukami said Hayashi taught employees that they must always care for the Pagoda and for its guests, who were largely local and thus more demanding.

"Those lessons have been passed down. People have to have heart that work here," she said. "If you aren’t passionate about where you work, you don’t belong here. Everyone here still cares."