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Apparently, on the inside of the album cover, Anton LaVey (founder of the Church of Satan in 1966) is seen peering down from the balcony.
The Eagles' manager, Larry Salter, admitted in the Waco Tribune-Herald (Feb. 28, 1982), that the Eagles were involved with the Church of Satan! This is how this rumour started.
The basic premise is that the song is about a Christian church that was abandoned (or otherwise vacated) in 1969, and was taken over by an occultist group. For some unknown reason, it became known as the “Hotel of California”.
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