Nicky Hilton is engaged to boyfriend James Rothschild, Us Weekly reports.

Rothschild, heir to the Rothschild European banking family, popped the question to the hotel heiress and fashion designer while in Lake Como, Italy over the weekend, a source tells the magazine.

Indeed, Hilton, 30, and Rothschild, took a romantic boat ride in Lake Como, evidenced in a photo Nicky posted to Instagram from the trip, which captured her smiling while looking out onto the water. You can check out that photo below.

And it looked like she had a lot to smile about, considering Rothschild, whom she met at a mutual friend's wedding in 2011, went all out for the proposal.

"They went on a romantic anniversary trip over the weekend," the source told the magazine. "He took her out on a boat into the middle of Lake Como and he proposed, got down on one knee and everything. It was incredibly romantic and beautiful."

So sweet! But that's not all: Rothschild even went stateside to officially ask Hilton's parents for her hand in marriage the month before. Talk about dedication!

This will be the second marriage for Hilton, who was previously wed to Todd Meister, though their marriage was annulled after three months.

"They are both really excited and incredibly happy," the Us Weekly source dished about Hilton and Rothschild, who have been together for three years.

Congratulations to the happy couple!

Hollywood's Brightest Bling: Check Out These Impressive Celeb Engagement Rings