How Axel Hotels Built the World’s Leading LGBTQ+ Hospitality Brand and Why Hotel Owners Are Seeing Double-Digit Revenue Growth.
We spoke with CEO Albert Olivé about 17 years of Axel Hotels growth, its LGBTQ+ hospitality strategy, and how its franchise model is driving strong revenue growth for hotel partners worldwide.
Axel Hotels grew from €2.4M to €46M revenue across 13 properties by targeting LGBTQ+ travelers through franchising, with partners seeing 40% revenue uplifts.
Photo by Axel Hotels
Axel Hotels started with just €2.4M in revenue. What has driven this extraordinary growth?
From one hotel in Barcelona to 13 operating properties, with the next opening in Porto in 2027, across 5 countries and more than €46M in revenue, the key has been understanding one thing very early: the LGBTQ+ traveller is exceptionally loyal, resilient, and experience-driven. Our success came from being authentic and crystal clear about who we are from day one.
You often describe franchising as the "engine of fast growth." Why?
Because it allows hotel owners to transform existing assets into Axel Hotels with limited capex while immediately connecting to a global LGBTQ+ audience and our direct distribution ecosystem. It is a very efficient conversion model for lifestyle hotels.
What kind of results are franchise partners seeing?
Our first franchise in Mykonos achieved a 40% revenue uplift in its first year compared to the previous operation. The franchisee was so satisfied that they immediately opened a second Axel property with us in Crete.
What makes the Axel guest profile so attractive for hotel owners?
The Axel guest is highly loyal, international, socially connected, and spends significantly on travel, gastronomy, wellness, nightlife, and experiences. For owners, this translates into stronger ADR, higher F&B revenues, longer stays, and excellent repeat guest ratios.
Can you quantify that performance?
In several beach destinations, we operate with occupancies above 90%, long average stays, and repeat guest rates reaching 35%. We were also recognised as the leading Spanish hotel chain in revenue per employee according to the Hosteltur ranking.
How important is community engagement within the Axel model?
It is everything. Axel Hotels are not simply places to sleep — they are social destinations where guests connect, feel comfortable, and live experiences. That emotional connection creates extraordinary customer loyalty and strong direct booking performance.
Where is Axel Hotels expanding next?
Our roadmap is focused on key lifestyle destinations across Europe and selected U.S. markets. Upcoming openings include Porto, while active expansion targets include Seville, Málaga, Athens, Rome, Milan, Paris, Lisbon, and several American and Asian destinations, including New York.
So location is critical?
Absolutely. Axel is highly selective with locations. We prioritise vibrant social and cultural districts where the LGBTQ+ community naturally gathers, because that is where the brand becomes truly unbeatable.
What type of hotel fits best within the Axel franchise model?
Typically lifestyle hotels between 30 and 120 rooms, ideally with rooftop potential, wellness areas, strong F&B concepts, or experiential positioning. Urban and beach destinations both work very well for us.
What about the investment required to convert a hotel into Axel?
In many cases, the capex is relatively limited. The "axis" of the brand is the community and the experience, rather than imposing a rigid design model. If the hotel already has personality and quality, adaptation can be very efficient.
Final message to hotel owners and investors?
With the franchise structure and operational infrastructure now fully consolidated, Axel Hotels is ready to accelerate international growth while preserving the authenticity and consistency that made the brand successful. If your hotel is close to the LGBTQ+ district of your city and you want to increase revenue significantly… we should talk!