Churchill Downs to Construct Hotel, HRM Facility and New Permanent Stadium Seating at First Turn of the Iconic Racetrack

Oct 30, 2019 Tonya Abeln

Millionaires Row 6 Renovation will Offer New Premium Experience

LOUISVILLE, Ky., (October 30, 2019) – Today, Churchill Downs Racetrack (“Churchill Downs”) announced a number of major capital investments that promise an unparalleled variety of new VIP guest experiences, including the construction of permanent stadium seating, a hotel and historical racing machine (“HRM”) facility in the first turn at the legendary racetrack as well as a renovation project of Millionaires Row.

Hotel, HRM Facility and New Permanent Seating

Pending final approval of a Kentucky Tourism Development Incentive Act, the $300 million investment project would begin in December 2019 with projected completion at the end of 2021. The development will transform the first turn of the 190-acre facility and provide guests opportunity for never-before imagined Kentucky Derby experiences.

The new 156-room, 7-story hotel will feature trackside suites, all of which will offer private balconies and covered panoramic views of the entire track, as well as non-track facing rooms that will offer access to a 2^nd floor party deck to watch racing. A Penthouse banquet room, 27,000 sq. ft. ballroom and meeting rooms will add desirable event space throughout the year and will likewise include exclusive Derby package offerings that will offer spectacular track views and the full bucket-list experience that Kentucky Derby guests have come to expect.

“Derby Week guests can wake up to a sunrise view as horses breeze around the track and then have their Kentucky Derby in their suite,” said Kevin Flanery, President of Churchill Downs Racetrack. “We took exceptional consideration with the design approach to this project to ensure that the addition will seamlessly enhance and complement the historic nature and iconic aesthetic of Churchill Downs. Our goal is to create a one-of-a-kind venue not just for Derby week, but for the public benefit of our community and visitors of Louisville to enjoy throughout the year.”

The hotel will include a 900-machine state-of-the-art HRM gaming floor, sports bar, VIP lounge and multiple year-round dining venues. In addition to welcoming patrons throughout the year, it will be packaged with exclusive Derby Week hospitality access for 3,400 guests in the existing Section 111.

New permanent covered stadium seating for 4,700 will replace the 3,300 temporary grandstands historically located in that area. It will provide a thrilling spectator experience to the thunderous racing and the famous Kentucky Derby walkover as well as an all-inclusive hospitality experience.

In total, the project will provide approximately 5,500 new reserved seating options for the Kentucky Derby and Oaks. Additionally, 6,700 existing customers will have access to upgraded amenities.

The project will provide for approximately 600 construction jobs and establish approximately 300 new permanent jobs upon completion. Churchill Downs has received preliminary approval for Tourism Development Act incentives that will enable this project to move forward and is awaiting final approval from the Kentucky Tourism Development Finance Authority in November.

Millionaires Row 6 Renovation
Churchill Downs will create a finely-curated culinary experience for guests of Kentucky Derby 2020 with an $11 million renovation of 6^th floor Millionaires Row. The update will offer upscale guest offerings and elevated service for up to 350 guests with a prime and picturesque view of the racetrack’s finish line.

The innovative concept will include an exclusive menu, deluxe drink and champagne packages as well as concierge service dedicated to meet tailored needs including pre-orders and dietary restrictions. Unique and interactive hospitality experiences punctuated with personal detail will be incorporated throughout the space including an in-room handicapper to consult for wagering along with premium and private bourbon tastings.

“Creating unique experiences for our guests has been the hallmark of the Kentucky Derby,” said Flanery. “From our Stakes Room and Turf Club renovations in 2016 to our Starting Gate Suites addition in 2018 and most recently our Starting Gate Suites Rooftop, we have consistently personalized each offering with the diverse expectations of our guests whether they are attending for the first time or returning year after year. Not since the opening of The Mansion have we conceived of something this luxurious and truly one-of-a-kind.”

The renovated space will feature private dining rooms, lounge seating, window dining and a speakeasy bourbon room. More information on individual tickets to the new space for Kentucky Derby 2020 will be made available during an online ticket sale later this year.

Renovation will begin at the close of Churchill Downs’ Fall Meet in December 2019 and will be completed prior to the running of the 146^th Kentucky Derby Presented by Woodford Reserve on Saturday, May 2, 2020.

Churchill Downs Racetrack President Kevin Flanery will be available to answer press questions on Thursday, October 31 between 11 p.m. and 12 p.m. EST. Please contact Tonya Abeln for scheduling and additional details.

About Churchill Downs Racetrack
Churchill Downs, the world’s most legendary racetrack, has conducted Thoroughbred racing and presented America’s greatest race, The Kentucky Derby, continuously since 1875. Located in Louisville, Ky., the flagship racetrack of Churchill Downs Incorporated (Nasdaq: CHDN) offers year-round simulcast wagering at the historic track. Churchill Downs will conduct the 146th running of the Kentucky Derby Presented by Woodford Reserve on May 2, 2020. The track’s 2019 Fall Meet will run from Oct. 27-Dec. 1. Information is available at www.ChurchillDowns.com.

About Churchill Downs Incorporated
Churchill Downs Incorporated ('CDI') (Nasdaq: CHDN), headquartered in Louisville, Ky., is an industry-leading racing, online wagering and gaming entertainment company anchored by our iconic flagship event -- The Kentucky Derby. We own and operate Derby City Gaming, a historical racing machine facility in Louisville. We also own and operate the largest online horseracing wagering platform in the U.S., TwinSpires.com, and are a leader in brick-and-mortar casino gaming with approximately 11,000 slot machines / video lottery terminals and 200 table games in eight states. We also operate sports wagering and iGaming through our BetAmerica platform in multiple states. Additional information about CDI can be found online at www.churchilldownsincorporated.com.

Information set forth in this news release contains various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), which provides certain “safe harbor” provisions. All forward-looking statements made in this presentation are made pursuant to the Act. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” and similar words, although some forward-looking statements are expressed differently.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include the following: the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit; additional or increased taxes and fees; public perceptions or lack of confidence in the integrity of our business; loss of key or highly skilled personnel; restrictions in our debt facilities limiting our flexibility to operate our business; general risks related to real estate ownership, including fluctuations in market values and environmental regulations; catastrophic events and system failures disrupting our operations; online security risk, including cyber-security breaches; inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; increases in insurance costs and inability to obtain similar insurance coverage in the future; inability to identify and complete acquisition, expansion or divestiture projects, on time, on budget or as planned; difficulty in integrating recent or future acquisitions into our operations; number of people attending and wagering on live horse races; inability to respond to rapid technological changes in a timely manner; inadvertent infringement of the intellectual property of others; inability to protect our own intellectual property rights; payment-related risks, such as risk associated with fraudulent credit card and debit card use; compliance with the Foreign Corrupt Practices Act or applicable money-laundering regulations; work stoppages and labor issues; difficulty in attracting a sufficient number of horses and trainers for full field horseraces; inability to negotiate agreements with industry constituents, including horsemen and other racetracks; personal injury litigation related to injuries occurring at our racetracks; our inability to utilize and provide totalisator services; weather conditions affecting our ability to conduct live racing; increased competition in the horseracing business; changes in the regulatory environment of our racing operations; changes in regulatory environment of our online horseracing business; increase in competition in our online horseracing; uncertainty and changes in the legal landscape relating to our online wagering business; continued legalization of online sports betting and iGaming in the United States and our ability to predict and capitalize on any such legalization; inability to expand our sports betting operations and effectively compete; failure to comply with laws requiring us to block access to certain individuals could result in penalties or impairment with respect to our mobile and online wagering products; increased competition in our casino business; changes in regulatory environment of our casino business; costs, delays, and other uncertainties relating to the development and expansion of casinos; and concentration and evolution of slot machine manufacturing and other technology conditions that could impose additional costs.