DALLAS (Reuters) - There can evidently be only one Hotel California.

The Eagles have settled a lawsuit to stop a Mexico hotel from using the name Hotel California, arguably the country-rock band's most famous song, after the hotel's owners withdrew their application to trademark the name in the United States.

Hotel California is the title track from the 1976 Eagles album of the same name, and won the 1977 Grammy for record of the year.

Its lyrics, lead singer Don Henley told CBS News in 2016, depict "the dark underbelly of the American dream".

Hotel California Baja was accused of encouraging guests to believe that the Eagles had authorised using the song's name, such as by playing the band's songs throughout its property.

The Eagles said this was done in part to spur sales of T-shirts, posters, refrigerator magnets and other merchandise.