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.