New $37.5 million Lexington Distillery District hotel will open in spring 2023
An upscale boutique hotel in Lexington’s booming Distillery District has started construction and will likely open in the spring of 2023, developers of the project said Friday.
The Manchester is a seven-story hotel that will include 125 hotel rooms, four restaurant and bar spaces, including a rooftop bar, an event space, a cafe and a salon.
The EOP Architects designed hotel is being built at 941 Manchester Street near the Manchester Music Hall complex.
“Lexington has and continues to invest substantially in its public commercial and recreational infrastructure. There are also few tourism destinations as dynamic as Lexington with as many culturally unique attractions,” said Nik Feldman, one of two principals of New Circle Investments, which is building the new hotel. New Circle Investments held an official groundbreaking for the hotel on Friday.
When completed, The Manchester will be located within walking distance of the currently under-renovation Central Bank Center, which is expected to be completed sometime in early 2022. It’s also off the Versailles Road corridor, making it an ideal location for visitors to Keeneland, Feldman said.
Mary Quinn Ramer, president of VisitLex, the city’s tourism bureau, said more hotel rooms are needed as the region’s tourism offerings are beginning to expand.
“With the near completion of the expansion of Central Bank Center, construction beginning on the $30 million Town Branch Park, and the continued enthusiasm for the Kentucky Bourbon Trail and Kentucky Craft Trail, additional sleeping rooms are needed near this growing area,” she said.
Mayor Linda Gorton said the city’s Distillery District, which includes a host of bars, restaurants, concert venues and retail shops, has helped diversify the city’s entertainment offerings and attracted tourists. Gorton supported the city issuing bonds to help finance the hotel.
“As a member of the city council, I was one of the first advocates for the Distillery District,” Gorton said. “I saw what it could do for our city and our downtown. We are beginning to realize this potential, and The Manchester is a big step forward.”
In June the city approved a $39 million industrial revenue bond for the hotel, which covers other costs in addition to the construction of the hotel, including financing.
The city will issue the bonds for the project, but the developer, New Circle Investments, will be responsible for making payments on those bonds. The title to the property will go to the city, which will lease the property back to New Circle Investments for 40 years. The city will not receive any property taxes during that time period.
The Lexington Public Library, Lextran, Fayette County Public Schools and the Lexington-Fayette County Health Department have worked out agreements to receive payments in lieu of taxes from the developer over that 40-year time frame.
This story was originally published December 10, 2021 at 1:04 PM.
