I don't think this is machine learning.
I have Facebook suggested a few albums today (2 hours ago). Some of them are from 2+ years ago, others are recent ones. The suggestion is quite accurate (89%, 8 out of 9 albums). With the incorrect album, Facebook suggested another city with the same name but from another country!
So Facebook probably just combine as much data as possible and when the matching rate is larger than some threshold, it will temporary tag the album and confirm with users. Data may include:
1. Album info (yeah, most of my album includes the place in it's name or description)
2. Comments group. 3 of my albums have a large number of comments, they are all from my highschool friends (I grouped them all in the same group) so it's quite accurate I guess. Also, if Facebook use the information in their smart lists, that makes sense too.
3. EXIF data. Some people says Facebook can read the data and cross-check the date with its database of check-in. This doesn't happen to me but I think it's possible. And of course, if the EXIF has geo-tagged, that info can be picked up.
Thought?