LOUISVILLE, Ky. — After a tough time turning profit amid the COVID-19 pandemic, businesses in Louisville's hospitality scene also deal with a different kind of Derby.

What You Need To Know

  • Louisville hospitality groups taking big loss on Derby

  • Many are planning alternative Derby festivities

  • Derby is the greatest money maker for Greater Louisville bringing in $500 million total

  • Everyone is optimistic about a rebound next year

Without spectators allowed in the stands to watch the 146th Kentucky Derby in-person, hotel occupancy is down significantly compared to the usual Derby weekend. Staff hopes to host at least some guests, for Derby specials and parties, over the Labor Day weekend. The host hotel of the Kentucky Derby, The Galt House, will hold viewing parties to showcase new features of the accommodation for mostly local guests. 

Hotels are banking on doing more business during Derby, after months of low occupancy amid coronavirus precautions. On a national scale, the American Hotel & Lodging Association (AHLA) says about two-thirds of hotels are still below capacity by 50 percent or more. In Louisville, the general manager of The Galt House, Patrick Gregory agrees, "occupancy has been very difficult this year. It's been a very slow year in hospitality."

Gregory is showcasing the hotel changes, like lounge areas and restaurant and room upgrades, ahead of guests getting in for the Derby weekend. 

Under more normal pre-pandemic circumstances on a "Thurby," the Thursday before the Kentucky Derby, Gregory recalls quite the different scene his hotel's lobby is: "one of the busiest days in all of hospitality. So there would be fanfare, limousines, excitement, activity, cocktails...music."

Instead, there will be a "pandemic party" for Derby 2020. Races will show on large TV screens, while people place bets on their phones, buy drinks, and enjoy the new lounge space and rooms at The Galt House. At least, that's Gregory's ideal scene for this year. Over the past few weeks as Churchill Downs tweaked its Derby plan, Gregory admits hotel reservations did decrease.

"Once attendees were not allowed in the Downs, we had a number of people change their reservation to come to Derby 2021 next year," he says. 

Typically, Derby is the biggest money-maker for Greater Louisville; all events combined bring in about $500 million, according to Louisville Tourism. Stacey Yates, the agency's vice president of marketing and communications, says Louisville is down $300 million in tourism, aside from losses from Derby.

"Not having fans has taken another hit, unfortunately. But we are grateful for anything. You've got certainly people traveling to the city that have work to do at the Kentucky Derby, from the horse connections to working media," Yates says. 

Galt House staff hesitate to reveal how the Derby changes and pandemic have hit the hotel's bottom line. But Yates puts it this way: the shutter of hotels, restaurants, and bars from COVID-19 early on caused about half of the Greater Louisville's 60,000 tourism jobs to be cut, on average. 

"So, just any piece of business helps keep people employed in the tourism industry right now," Yates adds.

Gregory is optimistic the business will get better after the first of next year. He hopes this weekend is a step toward that. 

"I've never ever imagined a Derby without spectators, or to not have a party, but that's part of the reason we decided to do what we're going to do here this year," he says.