I visit Barcelona 4-6x a year, and have done so for some years.

As stated above, the gay area is in the Eixample (pronounced Ashamplay) but it's in the part of the district to the Left of the Paseo de Gracia. A gay-run hotel - Axel Hotel - is there and very close to the bars etc. It's comfortable, normally very busy with other gay guys staying but it's only 3*

When I spent a week there in August 2008 with a friend, we used Expedia to book the Hotel Claris which is 5* as it was cheaper than the Axel (as businessmen's hotels in Europe are usually pretty empty in August)

I get a taxi when I go to the beach; normally the journey time is 15mins and even in "rush-hour" traffic for Sunday lunch at the beach it only takes 30mins or so.

Send me a PM if you want some recommendations on restaurants or comment on other hotels.