Axel Hotels steps on the gas to reach major European capitals

BarcelonaAxel Hotels was a pioneer. The hotel chain geared towards the LGBTQ+ community was founded in 2003 in Barcelona's Gaixample district, "at a time of widespread closures that were nothing like the current situation," as CEO Albert Olivé recalls. More than 20 years later, times have changed, and the company has grown to over 1,000 rooms, with an expanding portfolio that extends to Cuba. Although 80% of Axel Hotels' guests are part of the LGBTQ+ community, they always remember that they are heterofriendlyWith a strong presence in Spain, with hotels in Barcelona, ​​Madrid, Valencia, Bilbao, San Sebastián, Ibiza, and Las Palmas, the company launched a franchise model at the beginning of last year to accelerate its expansion. The first establishment under this new system opened this year in Mykonos, and the second will open next year, also in Greece, in Crete. The COVID-19 pandemic severely impacted the tourism sector, "which was badly affected," as Olivé laments, but, after the crisis, activity has skyrocketed and interest in investing has fully returned. "Today, there is considerable appetite among investment funds and family offices "To invest in any hotel project, because the returns are high. The sector is booming. Furthermore, Axel is a brand with no alternatives, and thanks to the loyalty of our target audience, we generate above-average revenue streams," says Olivé, adding that their clients travel year-round and spend more "because they don't have family responsibilities." With this new venture, they will cease opening new hotels through lease agreements. The last one will be in Porto, their first hotel in Portugal, with its opening planned for next year. Aside from the two franchises, the company will focus on management. Founded by Juan Juliá, Axel Hotels sold 35% of its capital in 2016 to the port operator Global Ports Holdings, but in 2022, Juliá bought back his stake to regain full control of the company.

“We want to be in the major European capitals,” Olivé emphasizes. For now, they only have a presence in Berlin, and their focus is on expanding to London, Paris, Amsterdam, and Rome. They also want to cross the Atlantic, with plans to launch in the United States, the origin of many of their guests, whose numbers haven't decreased since Donald Trump took office. as some hoteliers in the city warnAxel Hotels is eyeing destinations like New York, San Francisco, and Los Angeles. And in Spain, where it has nine properties, it's not quite finished yet, with gaps still to be filled, such as in Málaga and Seville. Looking ahead, they plan to expand into Asian markets.

"We are not one Bed & Breakfast Unlike conventional hotels, our guests need an experience, not just a place to sleep. We're a hotel where things happen, and for us, a good location and offering added value are key, such as a relaxation area with terraces, solariums, and rooftop pools, but above all, the bars. This is the meeting point with the local community,” the executive points out. With four-star hotels, both urban and beachfront, the hotel chain has “many projects” in development, although none are moving forward yet.

Double-digit growth

With 90% occupancy and an average nightly rate of around €150, Axel Hotels has experienced double-digit growth for the past two years, not only in terms of revenue but also profitability. They expect to close 2025 with a turnover of €46.5 million, a 14% increase over the previous year, and an EBITDA (earnings before interest, taxes, depreciation, and amortization) of €7.5 million, a 15% increase. The Barcelona-based chain anticipates reaching an EBITDA of €9 million next year, representing a 20% increase. This leap will coincide with the full opening of its two franchised hotels in Greece, following a brief trial run this summer with the Mykonos hotel, which did not open every month of the season and was unable to sell rooms at a profit margin. All of this will be accompanied by an increase in staff by 2026, both in the establishments and at the head offices, also located on Consell de Cent street, a few steps from the reception of their first hotel, their highest-grossing one. They currently have more than 110 employees.