Michael Hatch, 74, booked into the £120-a-night Hilton at Gatwick Airport with wife Helen ahead of their trip to Spain, reports SWNS.
But during the night he found himself under attack from a legion of the blood-sucking insects which left his body covered in a large number of tiny sores.
Michael, of Southsea, Hampshire, said: "It was a nightmare, it ruined my holiday. I went to bed and woke up to find blood all over the sheets. I had bites all over me.
"I was staying overnight ahead of my holiday. I had no idea what the insects were but when I squeezed one lots of blood came out.
"I panicked a bit as there was blood everywhere. It would sting when I went in the shower and all very uncomfortable.
"I couldn't sunbathe because I was worried. It upset Helen too because we couldn't really enjoy our holiday."
The Hilton apologised and refunded Michael for his room but he asked a friend to pursue the hotel giant for compensation and was eventually given £750.
A spokesman for Hilton Worldwide said: "We take allegations of bedbugs extremely seriously.
"As soon as we were alerted to this issue we immediately bought in specialist contractors, who subsequently isolated and eradicated the problem.
"We would like to reiterate our regret that such an incident occurred and as a gesture of goodwill we have reimbursed and compensated our guest for the distress and inconvenience caused.
"Whilst they are rare, bedbugs can come into the hotel through luggage or on clothing, and in the unlikely event that a guest suspects a problem we have strict procedures in place to address any concerns.
"The safety and wellbeing of our guests is our top priority."
Woman wakes up to find bed crawling with bugs at London hotel