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Portland Developer Paul Brenneke Awarded the Avalon
Hotel & Spa In Settlement with Former Partners;
Grand Heritage Hotels Appointed Manager


PORTLAND, Ore. (June 2004) – Portland developer Paul Brenneke, CEO of Avalon Holdings LLC and majority partner in the investment group of Avalon Hotel Developer LLC, has been awarded the Avalon Hotel & Spa and adjacent Rivers Restaurant as part of a settlement with his former partners.  An undisclosed cash sum was also paid to Brenneke’s entity as part of the settlement.  This was the final chapter in the ongoing partnership dispute between Brenneke and his former partners resulting from the post 9/11 restructuring of the hospitality industry.  Previously, as part of a settlement between affiliated investors, Brenneke obtained 100 percent ownership of the Second & Pine luxury hotel-condominium property in the heart of Downtown Seattle.
"I’m very pleased we have finally resolved the Avalon partnership issues and put to rest these outstanding items which prevented effective restructuring of the Avalon Hotel project,” says Brenneke. “We can now focus on our plans to re-implement the original vision held for the property as Portland’s premier luxury hotel and destination spa.” 

Brenneke has already secured the management expertise of Grand Heritage Hotels, an international hotel management firm, and its local representative Scott Brooks, GM at The Governor Hotel, to shepherd the day-to-day operations.

Avalon Hotel & Spa
0455 S.W. Hamilton Court
Portland, Oregon
“The Avalon is an outstanding facility,” says Brooks, “and we look forward to all of the opportunity this property promises in a rapidly improving market such as Portland.” 

Under Brooks’ management, The Governor increased occupancy by 17 percent since taking over six months ago and earned the prestigious AAA Four Diamond Award. Previously, both The Avalon & The Governor were managed by Waterford Hotels and Inns, Inc., a California-based management firm with eight properties in its portfolio.

Grand Heritage Hotels specializes in historic properties that epitomize luxury and comfort. Originally founded in 1989 by owner John Cullen, the Grand Heritage Hotel Company, including 18 hotels in the United States and 57 international franchises, was sold in 1997 to Wyndham International. In 2003, Cullen repurchased the historic hotel company from Wyndham International. He is now re-launching the Grand Heritage Hotels brand that includes seven hotels throughout the United States, including the newly purchased Governor Hotel in Portland, Oregon.

The Avalon Hotel & Spa is the only Oregon member of Small Luxury Hotels of the World and is the 2004 recipient of  Mobil Travel Guide’s "America's Best Hotel & Resort Spas" Award.

Avalon Holdings, LLC, is a commercial and residential real estate development firm based in Portland, which originally developed The Avalon Hotel & Spa. The development firm has earned national recognition for its upscale, urban environments using the latest in luxury design for its condominium projects and world’s top management for its hotels and facilities.


Paul Brenneke
(503) 539-0555

Also See: Avalon Hotel Partners LLC, Retains Control of the Avalon Hotel & Spa; Wins Court Ruling / October 2003
Grand Heritage Hotel Group Acquires Historic Governor Hotel in Downtown Portland / October 2003
Avalon Hotel and Spa Opening with Amenities of a Destination Spa in Downtown Portland, Oregon / April 2001

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