Yes. Socrates (or someone similar ) has said previously that award categories are based on demand...though I wonder then, how do they assign categories to new hotels?

And as far as the Courtyard and Residence Inn in NY requiring more points than the Ko Olina, I've seen the Residence Inn in NYC have rates over $600 at certain times of the year....Ko Olina can often be had at about $350. Ko Olina used to be a Cat 6 but is now a Cat 7 as well.