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I've been invited to the Kentucky Derby and have a Lexington question

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Our hosts live in Lexington and have suggested that we find a place to stay there rather than in Louisville. They are business acquaintances (in fact, I've only spoken on the phone to the woman) involved in the equine insurance business. Besides shopping for a hat, making the lodging reservation is really all I have to do soon. Any recommendations for a good place to stay? Are there hotels downtown that would allow a visitor to walk to restaurants, etc?

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