"I'm so happy to see her happy. She just looks so beautiful and smiling and I think they're just so cute together," Hilton, 40, said. "Funny guys are awesome because they just always make you laugh and put you in a good mood and good vibes. It's really cute."
Hilton and Kardashian have been friends for years. Kardashian also attended Hilton's recent wedding to husband Carter Reum.
Kardashian, 41, and Davidson, 28, first made headlines for sharing a kiss in an October 2021 Saturday Night Live sketch, in which they played iconic Disney couple Jasmine and Aladdin. Then, they were seen later that month holding hands while riding a roller coaster at Knott's Scary Farm in Buena Park, California.
Kardashian and Davidson recently enjoyed a tropical getaway in the Bahamas.
"They seem more comfortable than couples who have been together a long time," a source said. "Kim is obviously very happy with him."
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The SKIMS mogul shares daughters North, 8, and Chicago, 3, as well as sons Saint, 6, and Psalm, 2, with ex Kanye West. After nearly seven years of marriage, Kardashian filed for divorce from the 44-year-old rapper in February 2021. Months later, in December, she requested to be declared legally single.
"This is something [West] has struggled with since Kim started dating Pete. He never pretended he was happy about it," the source added. "He doesn't want Kim to date Pete. Or anyone else."