Chicago Developer Sues Hilton over Delayed Hotel Project

A Chicago development group is suing heiress Nicky Hilton for breach of contract over a delayed hotel renovation project just south of the city’s downtown.

In a lawsuit filed Monday in federal court, Robert Falor Investments and Grand USA Hotel Supply & Restaurant allege Hilton hasn’t kept up her end of an April 2006 agreement in which she promised to promote the redevelopment project known as Nicky O’s Chicago, a Nicky Hilton Hotel.

Hilton also allegedly contracted out interior design work she was supposed to perform and tried to charge it back to the developer, the suit alleges. The development group also claims Hilton misrepresented that she and her associates had experience in hotel design.

Paul Fisher, Hilton’s agent, also is named in the suit.

Elliot Mintz, a Los Angeles-based media consultant for Hilton, said neither Hilton nor Fisher had seen the suit as of late Monday night.

“Things are not always as they appear,” he said. “When the facts surrounding this matter are known to the public I think you will find out that the person who has been most impacted by this action will be Nicky Hilton. … In the meantime, I don’t think anybody should draw any conclusions based on the simple filing of a lawsuit.”

The Nicky O hotel was set to replace the Blake Hotel in Printer’s Row, located in the historic Morton Salt building. The project, along with a similar renovation along Miami’s swank South Beach, were to serve as Hilton’s foray into the family’s signature business, although neither Nicky O hotel would be affiliated with Hilton Hotels.

Both proposed hotels have been plagued by delays, and neither has opened yet.

Messages left for the plaintiff’s attorneys were not immediately returned Monday evening.

Hilton is the granddaughter of William Barron Hilton and the great granddaughter of Conrad Hilton, who founded Hilton Hotel Corp. in 1946. Her sister is Paris Hilton.