Story Highlights

  • Short-term rentals are growing in popularity in Louisville as the Kentucky Derby approaches, with more travelers choosing them over hotels.
  • Prices vary widely, with some rentals near Churchill Downs listed for up to $3,000 per night, though last-minute deals may still be available.
  • Hotel bookings appear slightly down, but demand is expected to rise as Derby weekend gets closer.

LOUISVILLE, Ky. (WDRB) — With just weeks to go before the Kentucky Derby, travelers to Louisville still have plenty of lodging options, and more are choosing short-term rentals over traditional hotels.

"With about three weeks until Derby, short-term rentals are popular year-round — especially around Derby time," said Jonathan Klunk, a Louisville real estate agent who specializes in short-term rentals. "Being closer to the track helps as well."

Klunk said Derby weekend remains the busiest time of year for property owners.

"We say Derby is the greatest two minutes in sports — this is the greatest two or three days for short-term rentals in Louisville," he said.

Some of those properties come at a steep price. Klunk recently listed a rental just a few hundred feet from Churchill Downs for about $3,000 per night, with a two-night minimum stay.

Klunk said travelers willing to wait may find deals.

"The closer it gets to Derby, generally the better deal you can get because there are still many listings available, so people are dropping their prices because they don’t want to miss out on Derby," Klunk said.

Data show the growing popularity of short-term rentals may be impacting hotels. Downtown Louisville has reported fewer hotel room nights booked over the past year.

"I would say that 10% of all leisure travelers who come to the city will pick a short-term rental over a hotel or other accommodation," said Zack Davis with Louisville Tourism.

Last year, short-term rentals in Louisville during Derby weekend averaged about $600 per night, with nearly 2,000 bookings. Hotels averaged closer to $800 per night, with both typically requiring at least a two-night stay.

Despite the demand, Klunk said bookings appear slower than usual this year but expects demand to increase as Derby gets closer and prices may drop.

"One thing I am sensing, though, this year is that people aren’t booking as quickly as they were last year," he said. "It really does become a very expensive crash pad for a lot of people."

Even with Derby approaching, last-minute bookings are still available across Louisville, ranging from $350 to $3,300 per night.

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