After more research... I've found that it's just metaphor for Los Angeles.
According to Henley, The "Hotel California" is actually, L.A. itself. The song and album take you on a trip through the music industry in L.A. in the late sixties early seventies, when agents and studios controlled artists like puppets. Back in the late sixties, 1969 to be exact, there was a major onslaught of artists being signed left, right and center, and artisit at the time were often known to basically "sell their soul" to a record company executive in order to get a recording contract. Many times these artists were given little if anything for their music, and thus ended up basically a victom to their love of music.
If anyone knows anything different... let me know.