UK travellers drive value growth for Palladium Hotel Group as leading European source market
UK remains the Group’s leading European source market, as Palladium Hotel Group invests in higher-value experiences across Spain and beyond
UK travellers account for 30% of Palladium Hotel Group's Spanish room revenue, with ADR up 4% overall and 10% in the Balearics, backed by a €90M investment in The Site Ibiza.
Palladium Hotel Group is seeing continued strength from the UK market in 2026, with British travellers remaining its number one European source market, ahead of Spain and the US. Performance across key destinations is increasingly being driven not only by demand and volume, but by higher-value travel, reflected in growth in average daily rates (ADR).
In Spain, the UK remains Palladium Hotel Group’s leading source market, generating 30% of total room revenue year-to-date, in line with 2025, while ADR from the UK market has increased by 4%. The trend is particularly noticeable in the Balearic Islands, where ADR from UK travellers has increased by 10% year-on-year.
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
Ana Morillo, Chief Sales & Marketing Officer of Palladium Hotel Group
From volume to value: investing in what UK travellers want
Palladium Hotel Group is responding to this evolution through continued investment in differentiated experiences, particularly across its luxury and lifestyle portfolio. A key example is The Site Ibiza, the Group’s new integrated destination in Playa d’en Bossa, developed through an investment of more than €90 million.
Rather than focusing solely on accommodation, The Site Ibiza brings together two hotels, gastronomy, retail, art and entertainment, reflecting Palladium Hotel Group’s strategy of creating broader destination ecosystems capable of attracting higher-value international travellers.
The development comprises BLESS Ibiza The Site and The Unexpected Ibiza Hotel, alongside IBIZA Gallery and a major gastronomic offering featuring internationally recognised concepts including COYA Ibiza and Gordon Ramsay Hell’s Kitchen, as well as restaurants associated with chefs including Dabiz Muñoz, Dani García and Paco Roncero.
The project represents a significant investment in the evolution of Playa d’en Bossa as a top luxury and lifestyle destination in Spain and Europe, with the Group specifically identifying international markets including the UK, US, Middle East and wider Europe as key audiences for the destination.
UK remains a key source market across Spain
The UK’s importance extends beyond Ibiza and the Spanish mainland. Indeed, British travellers represent the leading source market for Palladium Hotel Group in both Tenerife and Sicily, accounting for 52% and 32% of source-market share respectively.
This performance comes against a favourable backdrop for the UK outbound travel market. According to ABTA, 34% of British consumers expect to spend more on holidays, while Spain remains a particularly strong choice among UK travellers, with 38% identifying it as a destination they expect to visit. Short-haul travel also continues to dominate summer preferences, with 84% of British consumers favouring short-haul destinations.
Looking ahead
As the summer season draws to a close, Palladium Hotel Group expects to maintain positive momentum through the final months of the year, supported by continued international demand and its diversified portfolio.
The Group is also continuing to strengthen its presence in key European destinations, with the recent opening of BLESS Barcelona adding to its luxury and lifestyle offering in Spain. The UK is a priority source market for the property, reinforcing the Group’s focus on developing propositions that respond to the needs of high-value international travellers.
Looking further ahead, Palladium Hotel Group is also continuing to expand its portfolio and strengthen its position in the luxury and lifestyle segments, spanning destinations including Vietnam, New York and the UAE. The pipeline includes further expansion for brands such as Only YOU Hotels, BLESS Collection Hotels and The Unexpected Hotels, alongside continued growth in the Caribbean and Brazil.