Vincent Tchenguiz is suing Hilton for £111m over claims the hotelier failed to properly maintain 10 of his hotels.
Surveyors inspecting the hotels found no mechanical air supplies, with two only supplying half of their rooms with fresh air, according to the Sunday Telegraph.
Tchenguiz is asking for Hilton, which the hotels are leased to, to make repairs or pay compensation.
A spokeswoman for Hilton Worldwide said it was unable to comment on ongoing litigation.
The portfolio of hotels are up for sale for £600m. The portfolio includes trophy asset the 603-bedroom Kensington Hilton, W11, which is understood to be worth as much as £300m.
Other hotels are in Cobham in Surrey, Croydon, East Midlands Airport, Leeds, Northampton, Nottingham, Tewkesbury in Gloucestershire, and Watford.
A previous attempt to sell for £500m was abandoned in 2007 after failing to attract sufficient bids.
A legal row over the Hilton Group’s attempt to assign the leases on the hotels to subsidiary companies was settled in July 2014, when the High Court ruled the assignments were unlawful and in breach of the leases. The Tchenguiz brothers were awarded £4.5m.
Tchenguiz bought the hotels in 2002 from Hilton Group through a sale-and-leaseback deal. He gained full ownership in 2006 and the hotels are leased back to the US company until 2032.
Tchenguiz is in the process of undertaking a refinancing process of his portfolio.
From May 24: Tchenguiz prepares for £600m Hilton check out
