Lexington hotels are struggling to fill rooms as Kentucky Derby crowds spread out

The Kentucky Derby may still draw huge crowds from around the world, but hotels in nearby Lexington are struggling to fill empty beds.

For years Derby weekend has meant rooms selling out and prices rising sharply across the city.

Hotel managers now say the increase is spreading as more travelers choose to stay closer to Louisville or in surrounding corridors. FOX 56.

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This change left some Lexington hotels scrambling to fill rooms just days before the race, in stark contrast to previous years when reservations were locked in well in advance.

Industry observers say a number of factors may be contributing to this shift.

Alice Ford, travel host of “Alice’s Adventures on Earth” and frequent Kentucky Derby attendee, told Fox News Digital that recent changes to the event could contribute to broader participation.

“They added a few more race days to the beginning of the week, which spreads out the audience over a longer period of time,” Ford said.

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He also noted tighter security measures and broader economic pressures.

“Major events like the Derby are no longer high priorities for many people when choosing between expensive sporting events,” Ford said.

This change may be due to more race days and rising costs reducing demand. (Leandro Lozada/AFP)

He also said changing attitudes towards the ethics of horse racing could affect participation.

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Hotel managers in Lexington say the local impact is clear.

“Shelbyville has added a lot of hotels; Simpsonville, even Frankfort. So the Derby is no longer considered a ‘special event’ here,” Alison Chenet, general manager of the Hilton Garden Inn in Lexington, told FOX 56.

Changing attitudes about the ethics of horse racing may also be affecting attendance this year. (iStock)

Instead of tripling prices and selling out, many hotels are increasing prices more modestly and focusing on stabilizing occupancy.

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While Derby weekend remains busy, Chenet said Lexington hotels now see the highest demand during major events like Keeneland’s spring and fall meets as well as the Railbird music festival.

He added that his property was sold for Railbird weekend and room rates were much higher than usual.

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Chenet said he expects bookings to increase as race day approaches, but he estimates his hotel will reach about 85% to 90% capacity.