Landlord Michael Aslam, from Tilehurst, was ordered by his local authority to demolish his outbuilding at a property in Sipson.
In addition he was ordered to stop using the main house and none adjoining it as a hotel.
When he failed to comply, and continued to take rents, council officers took him to court.
Aslam, of Savernake Close, later appeared at Uxbridge Magistrates Court and admitted two charges of breaching planning enforcement orders.
The case was then referred on to Isleworth Crown Court for sentencing.
Subsequently, on Tuesday the 10th of June the court fined Aslam £7,500 for each offence, to be paid within six months or he will be jailed for a year.
If he does not pay £170,000 by the deadline Aslam is to face another 30 months in jail under the terms of the Proceeds of Crime Act.
The proceeds of this, assuming it is repaid, will be split between the local council, HM Treasury and the Courts and Tribunals Service.
Aslam is also required to pay the council’s costs of £17,676, within the same time frame.