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.