pretty nice. I think the blood red parts need a little more work.
It seems odd that only one drop of blood is on the axe, yet there's a lot more already on the ground plane. I'd sharpen that one drop a lot - it's too blurry - like a single click with the photoshop airbrush. Give it some shape, as it's colour gives it a lot of contrast, making it a (small) focal point - so you'd want it to look good.
I think the typography would need a little more work. Again, the hazy red doesn't seem to fit, even though it's similar to your reference pic. I think it's the contrast. Everything in the Hostel poster is vivid, highly saturated. This is a little more Silent Hill like.
I'd look at getting a photo of an axe with more texture. Either brand new (to get good highlights and the brushed metal texture) or very old, to give the axe more character. I think you need more to bring the type and axe out from the background more. Take a quick glance at the Hostel one, and notice how much the type stands out against the background. It's not just the colour that does this, but clever composition too. The red lines of text frame the name, and draw the eye there. The strong side lighting on the photo again, draw the eye and really bring out a lot of texture, which is so commonly seen in horror movies - gritty, vivid colours, lots of black.
I think the design is getting there, but needs more punch to it. The type doesn't need much tweaking - maybe only more contrast to lift it out where needed. If the axe was a photo you took, I might re-shoot with different lighting conditions, something to bring out the texture. I think it's certainly on its way though.
Just make sure you have the correct dimensions, and have it set to 300ppi if you plan to print it out