Nicky Hilton is a mom!

Hilton and her husband, British banking heir James Rothschild, have welcomed a new heiress into the world who they named Lily Grace Victoria Rothschild.

Sources confirmed to ET that both mommy and baby are surrounded by loved ones at a hospital in New York City where the birth took place early Friday.

As we reported, Hilton, 32, and Rothschild announced that they were expecting their first child in January. Little Lily is the first child for the couple who was married at Kensington Palace a year ago.

We wish the new parents and their baby all the best!