New York City's first gay hotel, the Axel Hotel at The Out NYC complex, will open its doors to guests in March, reported.

The $30 million project is a renovation of a former three-story Travel Lodge hotel located at 508 West 42nd Street. The complex will also house a gym and a restaurant, Kitchen 510. Its XL Nightclub will open later this month.

The project is being financed by Parkview Developers, which was founded in 2003 by gay couple Ian Reisner and Mati Weiderpass.

Spanish hotelier Axel Hotels will open its first American outpost inside the complex. The hotel will be moderately priced (starting at $250 a night) and include 105 rooms and three courtyards. An Axel roadmap includes plans for three additional U.S. Hotels to be built in its most gay-friendly cities: Los Angeles, San Francisco and Miami.

But New York, which already commands the lion's share of the red hot gay and lesbian tourism market, is poised to set a new tourism record with the legalization of gay marriage last June.

UPDATE: Sources tell us that the complex's hotel will be owned and managed by Parkview Developers. Details to follow.