No more Paris Hilton: chain loses rights to French hotel

The US socialite will be the only Paris Hilton left after the hotel chain lost the right to manage its sole establishment in the centre of the French capital under a court ruling.

Real estate and hotel firm SIHPM, owners of the Hilton Arc de Triomphe, took the US group to court for "serious violations of its obligations" under a management contract awarded in 2003.

SIHPM accused Hilton of having under-exploited the potential of the hotel, which it believed should be a five-star establishment instead of four, the company's lawyer Maurice Lantourne said.

It therefore sought to end the management mandate for the 500-room hotel, according to the ruling dated July 5.

The commercial court ruled in favour of SIHPM after finding "breaches" by Hilton, and gave SIHPM three months to "proceed to remove all references to the Hilton brand" on the hotel.

An independent expert has also been named to evaluate the damages and interests. The SIHPM is claiming up to 60 million euros ($A70.3 million).

Hilton France said it was contesting the ruling.

The US group runs four other hotels outside Paris, including at the city's two main airports and in Versailles, but the Hilton Arc de Triomphe was the only one located in the city centre.

AFP