UK travellers remain Palladium Hotel Group’s leading source market in 2026, with higher average daily rates contributing to performance across several of its key destinations.
In Spain, British guests have generated 30% of the group’s total room revenue year-to-date, in line with 2025.
Average daily rate from the UK market has increased by 4% across the group’s Spanish properties, rising by 10% year-on-year in the Balearic Islands.
Ana Morillo, Chief Sales & Marketing Officer of Palladium Hotel Group, commented: “The UK is a key market for Palladium Hotel Group, and the growth in average daily rates we’re seeing across our Spanish destinations strengthens its importance to our business. We are investing in experiences that go beyond the traditional hotel stay, with gastronomy, entertainment and lifestyle playing an increasingly important role in how we differentiate our offering. The Site Ibiza represents a significant step in that direction, as we continue to develop our luxury and lifestyle portfolio in destinations where we see long-term potential.”
Palladium Hotel Group is continuing to invest in its luxury and lifestyle portfolio as it looks to attract higher-value international travellers.
A major example is The Site Ibiza in Playa d’en Bossa, developed through investment of more than €90 million.
The destination combines BLESS Ibiza The Site and The Unexpected Ibiza Hotel alongside Ibiza Gallery and a range of food, drink, retail, art and entertainment concepts.
Its restaurant portfolio includes COYA Ibiza and Gordon Ramsay Hell’s Kitchen alongside concepts associated with chefs including Dabiz Muñoz, Dani García and Paco Roncero.
The project forms part of the group’s wider investment in Playa d’en Bossa, with the UK, US, Middle East and wider European markets identified among its key international audiences.
British travellers are also the leading source market for Palladium Hotel Group in Tenerife and Sicily, accounting for 52% and 32% of source-market share respectively.
The group cited ABTA research indicating that 34% of British consumers expect to spend more on holidays, while 38% expect to visit Spain.
The research also found that 84% of British consumers favour short-haul destinations for summer travel.
Palladium Hotel Group expects international demand to support performance through the remainder of 2026 as it continues to expand its luxury and lifestyle portfolio.
The recent opening of BLESS Hotel Barcelona has further strengthened its Spanish offering, with the UK identified as a priority source market for the property.
Looking further ahead, the group is developing projects in destinations including Vietnam, New York and the UAE.
Its pipeline includes further expansion of Only YOU Hotels, BLESS Collection Hotels and The Unexpected Hotels alongside continued growth in the Caribbean and Brazil.