The gay-run Axel hotel is actually quite nice, and well-located. It's a pleasant short walk to the Ramblas, and a pleasant long walk to the beach. There's a subway stop a couple of blocks away as well.

When I was there last year, the (cute!) staff were very helpful and the room was attractive, clean and comfortable. The very large shower was especially nice. There's a rooftop pool and bar.

There seemed to be a lot of different sorts of people staying there--gay men of every age and description as well as lesbians and more than a few straight people. I will definitely go back.