Design-led hostels are an increasingly competitive marketplace, with providers seeking to carve their own niche in the luxury travel industry. Step forward, Generator, a highly unusual chain of Western Europe hostels that bridges the gap between hostel and hotel.

Generator hostels give each location their own style, reflecting the local culture and ethos of their host cities. Its hostels in Copenhagen and Berlin offer outrageous interiors and unforgettable local events right in the heart of the city centre. Generator recently opened its doors in Barcelona’s Gracia district, having been designed by Anwar Mekhayech, a Toronto-based interior designer from The Design Agency.

The hostel is inspired by its surroundings, with Barcelona’s stunning architecture and nautical history playing a major role in its interior design. The moment visitors arrive in the hostel lobby, they are greeted by a stunning internal pavilion and splayed wooden boarding that recall the ribs of a ship’s hull.

As a flagship resort, Generator Barcelona is brought to life with bespoke artwork and design features from local architects, suppliers and artists, including unusual light fittings and striking super-graphics. The reception and bar area boasts more than 300 colourful lanterns from local artist, Julie Plottier, modelled on the city’s annual Festa Major de Gracia.

What takes this hostel to completely new heights is its fantastic mix of hostel and hotel-style rooms. Available in either singles or doubles, its rooms are encased within beautifully-designed décor, set aside from the hustle and bustle of the hostel – ideal for a quiet and relaxing trip.

For travellers and holidaymakers who want their accommodation to go the extra mile, Generator Barcelona’s much-vaunted penthouse suite allows you to start your trip in five-class style. Offering panoramic views of La Sagrada Familia from a private balcony, the room boasts a queen-size bed, a luxurious bathroom and a cutting-edge lounge complete with mounted flat-screen television and iPod dock.

For those keen to socialise after a long day’s sightseeing, another jewel in Generator’s crown is its Fiesta Gracia bar, with a vibrant atmosphere and walls festooned with inviting collage murals, in keeping with the complex’s strong Catalan flavour.

Offering something special to both budget-conscious and more extravagant clientele, Generator Barcelona really does take some beating and is carving its own luxury hostel niche very nicely.