Hotels: Hilton sister turns to family's traditional business

Nicky Hilton, an heiress to the Hilton hotel fortune and sister of the celebrity socialite Paris, is set to follow in the family tradition by launching her own luxury hotel brand, Nicky O.

The American model, 22, who already has a line of clothing and accessories, has teamed up with Chicago-based Falor, a privately owned developer, for the project.

The first Nicky O opens this November on South Beach in Miami, followed shortly by another in Chicago. Altogether, $92m (£49m) has been invested in the first two hotels, and there are plans for up to four more properties in as yet undisclosed cities across the US.

At the South Beach property, Ms Hilton has used the Italian fashion designer Roberto Cavalli to kit out the penthouse, a 5,000 sq ft, gold-themed space described as a mixture of French Regency and "Old Hollywood".

California-based clubwear label Heatherette has also been signed up to design an ocean-view suite, and other designer collaborations are said to be in the works.

"I wanted each suite to be more extravagant than the next," Ms Hilton said. "It's a fashion hotel; that's never been done before. I wanted to pay tribute to fashion. My friends are really excited."

Robert Falor, the developer, said: "We met with Nicky for the first time last November and discussed her vision for a boutique hotel brand. Nicky is extremely ambitious. She has been very successful in creating a real buzz for the brand."

Ms Hilton said she wanted to "create an environment that hasn't been seen before".

Rates for rooms, which are all suites, at the Miami hotel have been pitched at approximately $300 (£160) to $5,000. The development will also house a complex of luxury flats, priced between $500,000 and $7m.