Wednesday, October 8, 2008

Hilton Hotel's Next Gen Flops

Hotel heiress Nicky Hilton and Robert Falor planned "Nicky O. Hotels", but

despite the famous name the business is not getting off to a good start. Mr.

Falor, a real estate developer wanted to have more than a $1 billion worth

of property around Miami and Chicago. He had newspapers calling him the "condo-

hotel king", but is today almost bankrupt. Two hotels in the trendy South Beach

area were to be marketed under Nicky Hilton's name. Robert Falor pretended

to own property that was not his, mismanaged finances, and used business funds

for personal luxury cars and a jet. Rande Gerber, husband of Cindy Crawford,

was going to work with Maxim magazine to open one of his bars in Mr. Falor's

Royal Palm Hotel in Miami, but this will not occur. The main reason the hotels

failed is because they were priced wrong. Another blunder happenned between

Robert Falor and Nicky Hilton where he sued her for not promoting the hotels

as promised. She was going to use David Letterman, People Magazine, and

designer Roberto Cavalli to promote the hotels and this did not occur. Mr.

Falor and Ms. Hilton settled out of court for an undisclosed amount. It looks

like Nicky Hilton will leave the hotel legacy to the "older" generation.

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