The lawsuit was filed on Monday, May 1, against the small 11-room hotel in Baja California, Mexico. The suit noted that the owners of the hotel "actively encourage" the falsity that the hotel and band are associated.
Allegedly "multiple online reviews make clear" that visitors are deceived, according to the legal claim by the band.
The Hotel California reportedly plays The Eagles' albums over the hotel's speakers and sells merchandise, such as T-shirts.
The hotel opened in 1950 and went by the name Tondos Santos until it was brought out by a Canadian couple in 2001, who changed the name to Hotel California.
The Eagles hope to get an injunction from the courts to stop the Hotel California using the name and acting in a way that implies a connection to the US band. They are also reportedly seeking profits made on the hotel's name, and damages.
Hotel California features on the 1976 album of the same title. Ironically, the hotel picture on the cover of the album nearly got the band caught in a lawsuit as they had not asked for permission from the owners to use its picture.
Don Henley, who sang the lead vocals for Hotel California, said in an interview with CBS news last year that the song is about "a journey from innocence to experience. It's not really about California, it's about America."