New York-listed Churchill Downs Incorporated (CDI) plans to invest $300m to make improvements at its Churchill Downs Racetrack, home of the Kentucky Derby.

The company will build a new 156-room seven story hotel at the venue, alongside a historical racing machine (HRM) facility with a gaming floor featuring 900 machines, a sports bar and VIP lounge, as well as 92 track-side suites for exclusive guest experiences.

The upgrade will also see permanent outdoor stadium seating installed for 4,700 guests to replace the 3,300 temporary grandstand seats, and will provide approximately 5,500 new reserved seating options for the Kentucky Derby and Oaks.

"Derby Week guests can wake up to the sun rising as horses breeze around the track and then have their Kentucky Derby party in their suite," said Churchill Downs Racetrack president Kevin Flanery. "Our goal is to create a one-of-a-kind experience that will honor the history of the Derby and provide a venue for our guests, the community and visitors of Louisville to enjoy throughout the year."

CDI has received preliminary approval for Tourism Development Act incentives that will enable the project to move forward, and is awaiting final approval from the Kentucky Tourism Development Finance Authority, which is expected this month.

The project will provide for an estimated 600 construction jobs while it is being built, and will create approximately 300 new permanent jobs upon completion in November 2021.

Shares in Churchill Downs Incorporated (NSQ:CHDN) closed in New York Friday at $129.11 per share, down 0.68 per cent.