Has Nicky O Started a Downward Spiral of Condo Hotels?
"Falor went bankrupt, what a loser! Cross him off my Blackberry!"
Nicky Hilton's disastrous Nicky O hotel plan has forced her developer Robert Falor and his Falor Companies to file for bankruptcy.
Oaktree lenders are suing Falor's Company for $36 million for failing to a) finish Nicky O and for b) failing to get celebs like Scott Storch or Pharrell Williams, or another "celebrity reasonably satisfactory to the Mezzanine Lender" to buy condos in the building.
So now that Oaktree's pulled out of the deal, Falor can't afford to renovate the property into a hotel-condo, regardless of Nicky O's presence. He's filing for bankrupty and plans to just make a regular old hotel sans condos. Key word: plans which is highly unlikely. He's probably hoping for someone to swoop in and buy it off of him. Maybe Clooney?
Either way, Nicky O got all sorts of media attention last fall* with Nicky making the usual press rounds. But it has turned out to be an embarrassment for everyone involved and Nicky hasn't even publicly commented on the destruction she left behind.
Perhaps the only person coming out on top is Mark Zilbert, who was initially assigned to sell the condo units of the proposed Nicky O South Beach.
But he found they weren't enamored by the idea of hotel ownership, no matter whose name was on the front door. "We were selling 300-square-foot hotel rooms," Zilbert said. "Celebrity clients are not interested in condo-hotels at all."
Zilbert will never sell condo-hotels to celebrities in this town again! By his own accord of course. Meanwhile, another hotel broker Guy Trusty (whatta name!) says Falor has given the hotel-model a bad name, thanks to Nicky O and some of his other failed condo-hotel ventures in South Florida.
All the while, Nicky Hilton's dating David Katzenberg and she and her tampon are hitting the Hollywood club scene nightly. Just another day in Hollywood folks!
*We wanna know---why hasn't People Magazine run an article on this yet since they were so gung-ho about Nicky's announcement last summer? Are they afraid they won't have exclusive rights to Paris' "How I Deal with Genital Herpes" story?