Major hotel groups are looking to new destinations to drive business, noting subtle changes in consumer behaviour that demand a response.
Geopolitical changes, from conflict in the Middle East to trade tensions with the USA, are shifting travel patterns. Key European destinations continue to sense pressure from growing visitor numbers, requiring a rebalancing of travel demand away from hotspots. And, in the age of AI, travellers are seeking out new adventures and destinations that deliver a great experience, without the crowds.
Spotting Smaller Destinations with Experiential Appeal
Dimitris Manikis, European leader for Wyndham Hotels & Resorts, told the Financial Times in August 2026 that the group is now looking for smaller properties, signing boutique hotels in second and third tier cities around the continent. At IHG, chief executive Elie Maalouf has indicated the group is looking to broaden its European offer, with new cities and large towns being looked over for tourist opportunities.
Figures from the UN World Tourism Barometer suggest there were 794 million international tourist visits across Europe in 2025. Spain welcomed 46.6 million visitors the first half of 2026, making it the second most popular country destination in the world. That figure was up 4.6% year on year. Not far behind, Italy saw a 4.4% year on year rise.
The European continent is seeing a clear rise in visitors from the US. The figure for 2025 was 23.3 million trips by US citizens, a figure that consultants expect to rise by 5.1% in 2026. At the same time, a tougher line taken by US authorities on arrivals into US airports has suppressed European demand for Stateside holidays. Many are choosing to stay within Europe instead.
Among new Iberian destinations that IHG is testing, is the Portuguese city of Braga. With a history dating back to Roman times, the settlement is also on a major pilgimage route. IHG will open the 56 room Esperanca Hotel as part of its Vignette Collection, a property that will be converted from existing buildings in the town. It will open in late 2026.
The group is also promoting the Spanish destination of Valladolid, north west of Madrid. There, IHG will open Voco Valladolid in the first quarter of 2027, taking over an existing hotel with its conversion-friendly brand and adding a hotel with 80 rooms.
Working with Low Cost Airlines
In Iceland, a strategic move to expand tourism activity outside the capital, Reykjavik has involved a regional airport, a budget airline, and hotel giant Hilton. EasyJet has launched regular direct flights from Manchester and Gatwick, encouraging UK tourists to visit the destination, which is ideal for whale watching and for seeing the Northern Lights.
Hilton has opened the Skald Hotel Akureyri, as part of its Curio Collection. The 86 room hotel in the town centre will be an ideal hub for visitors to this dramatic country and landscape.
