Traditional Derby week big loss for hospitality industry

LOUISVILLE, Ky. (WDRB) -- The COVID-19 pandemic has emptied most local hotels and this this week, Derby Week, is especially painful for the hospitality industry.

Derby week is typically the busiest week of the year for Louisville area hotels.

However, instead of accommodating thousands of out of town guests, most local hotels are either closed or nearly empty.

"Occupancy has dropped significantly from what we're used to," said Dustin Stutzman, area director of sales and marketing for First Hospitality, which owns a local restaurants and hotels such as Home2 Suites in NuLu, The Hilton Garden Inn Downtown and The Hancock House.

Stutzman says the COVID-19 pandemic has nearly emptied them all.

"April is typically our prime-time. We've made a complete 180 and adjusted," he said.

Those adjustments include some deep discounts and even complimentary rooms. Stutzman said the company wanted to find ways to help the community and front-line workers.

"We've been able to partner and use Hilton's national program; we've offered 266 complimentary rooms between the Home2 Suites and Hilton Garden Inn Downtown, all for front-line medical staff," he said.

Karen Williams, president and CEO of Louisville Tourism, said the entire hospitality industry has felt the pandemic "to the core."

Williams, who works with big and small local hotels, said Derby week usually brings two weeks of "really good economic impact."

Instead, most hotels are generating little -- if any -- revenue.

"We have lost, due to canceled business that we've moved to different months and different years, ... over $166 million of economic impact of business," Williams said.

If the Derby takes place Sept. 5 as rescheduled, Williams believes it would provide a nice rebound for the local hospitality industry.

"Absolutely, because I think, right now, everyone has got this pent-up demand to want to travel," she said.

Stutzman agreed and said his company is already taking steps to protect customers and give them peace of mind.

"We're focusing on cleanliness, we're going to focus on our touch points," he said. "For instance, Hancock House has touchless hospitality. There are zero interactions, from the time that you book to the time that you get to your room."