The impact of Hotel California was immediate, both critically and commercially. The album topped the Billboard 200 chart in the United States and spawned several hit singles. The title track, "Hotel California", along with "New Kid in Town", reached number one on the Billboard Hot 100, while "Life in the Fast Lane" peaked at number 11. At the 20th Grammy Awards, "Hotel California" was named Record of the Year, and "New Kid in Town" won Best Vocal Arrangement. Though the album was nominated for Album of the Year, it lost to Rumours by Fleetwood Mac. The song "The Last Resort", the album's closing track, addresses the end of new frontiers and the constant destruction of paradise, a concept that resonated with the environmental concerns of the time.
Hotel California cemented its status as one of the best-selling albums of all time. It has been certified 28 times Platinum in the U.S. and has sold over 42 million copies worldwide, making it the second best-selling album by Eagles after Their Greatest Hits (1971–1975). Numerous publications have included it in best-of lists, such as Rolling Stone, which ranked it at number 37 on its "500 Greatest Albums of All Time" list in 2003 and 2012, and later at number 118 in the 2020 edition. In 2017, a special edition was released to commemorate its 40th anniversary, and the band performed the album in full during their "Hotel California 2020 Tour".