I don't think there is anything wrong with a "gay hotel" but I am not sure if I would want to be booked into a hotel that is "overtly gay". Many establishments cater to the Gay/Lesbiam communities and that's fine. I would be fine in a hotel that has a mixture of clientel but probably don't want to be surrounded by rainbows and services catering to the gay community.

I would probbly be a bit mad if I ws booked into a hotel by a travel agent and showed up to find that it was gay centric with activities geared toward that community.

If I was booked into a hotel that was "gay friendly" but had no other indications then it's just another hotel.