I took a photo in the UTC +2 time zone with my Samsung. I then uploaded it to Google+ Photos.
Then Google Photos automatically created a "story" for me, which is a compilation of various photos (that it deemed best) into a fancy slideshow. In the slideshow, it successfully marked various places in Italy where I visited.
Looking at the EXIF data of the photo (or the "Photo Details" in Google+ Photos), it does not contain any GPS data (the Location tag option was turned off on the phone).
So how does Google+ Photos know where the photos were taken?
Here is one of the photos for reference.