These hotel and grocery franchises are in the path of Hurricane Florence

2 months ago by James Mattone in Trends

Hurricane Florence is expected to make landfall on the Carolinas as a strong Category 2 hurricane, and is projected to hover over the two states until Saturday.

Along with impacting millions of lives, Florence will also cause some sort of effect on local businesses who will either have to deal with destruction from the storm or have increased business before, during, and after the hurricane. Two major businesses that are bound to be affected are hotels and grocery stores, which both play an important role in supplying residents with shelter and food before, during, and after natural disasters such as this.

Hotels could see destruction at coast, increased business inland

Choice Hotels ($NYSE:CHH) and Wyndham Worldwide ($NYSE:WYN), two massive American hospitality companies, have the second and third most individual business locations in the Carolinas out of all Travel & Leisure businesses tracked. Choice Hotels operates a variety of hotel and motel brands — Econo Lodges, Comfort Inns, and Rodeway Inn & Suites to name a few — as does Wyndham Worldwide, which also owns La Quinta Inns & Suites ($NYSE:LQ).

Entity Name Number of Stores
Starbucks 1026
Choice Hotels 803
Wyndham Worldwide 660
Dunkin' Donuts 454
Bojangles' 452
Domino's Pizza 385
Wendy's 384
Pizza Hut 365
Taco Bell 352
Papa John's Pizza

312

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La Quinta

30


About 6.5% of all Choice Hotels locations and 3.8% of all Wyndham Worldwide hotels (including La Quintas) are in the Carolinas. In other words, more than 1 of 20 hotels in the Choice Hotel brand would theoretically see some sort of impact in the state, while Wyndham won't be as affected by the storm as much.

 

The majority of their locations are scattered inland towards Charlotte, Columbia and low-lying Raleigh-Durham. Myrtle Beach, one of the most notable beaches in South Carolina that will see the brunt of Florence, ranks sixth among all cities for number of Wyndham and Choice Hotels.

City Number of Wyndham, Choice Hotels
Charlotte 76
Columbia 63
Greenville 41
Greensboro 41
Raleigh 40
Myrtle Beach 35
Florence 33
Fayetteville 30
Asheville 29
Durham 26

Logically, hotels on the coast will have to board up and see some destruction due to hurricane force winds and potential flooding, while residents fleeing inland will consider staying at hotels for safety and for temporary residency. This is especially true for those who must take care of pets during the storm, who will want to stay at specific Choice and Wyndham hotels among others in order to keep their faithful companion(s) safe.

Local, national grocers at a glance

Before a hurricane, some residents stock up on necessary foodstuffs that will last them through the storm. After it, those who lost electricity or had their houses flooded will have to go out and replace what spoiled or ruined in their refrigerators and pantries.

In the Carolinas, some of the most popular grocery stores include major chains Walmart ($NYSE:WMT) and discount grocer ALDI ($PRIV_ALDI), as well as local favorites in Publix ($OTC:PUSH) and Food Lion, a subsidiary of the massive food retail company Ahold Delhaize ($NYSE:DEG). In our database, there are over 600 Food Lions tracked in the Carolinas, more than all the Walmarts, Publix, and ALDIs combined.

Grocery Store Count
Food Lion 607
Walmart Supercenter 227
ALDI 200
Publix 97
Walmart 22


Much like the hotel chains, these grocers are distributed across the state at its most populated areas, with a few major outliers in barrier island towns, such as Avon and Kitty Hawk along the Outer Banks.

City Grocery Store Count
Charlotte 46
Raleigh 36
Columbia 26
Fayetteville 24
Greenville 24
Greensboro 21
Wilmington 18
Lexington 15
Durham 14
Winston-Salem 14
Myrtle Beach 12
Concord 11
Jacksonville 10
High Point 10
Gastonia 10
Florence 10
Rock Hill 10

On the surface, it seems that Food Lion would be most affected by Florence, but in terms of affected store percentage, it's Publix that will most likely feel the greatest effects of the storm.

With 8% of stores in the Carolinas compared to ALDI's 5.8% and Walmart's 5.9%, a large chunk of its sales will be affected in some form by the Category 2 storm. And while the majority of Food Lion's stores (58.8%) are in the Carolinas, it is still part of the Ahold Delhaize network that has thousands of grocery stores, such as Stop & Shops and Giant Foods, across the nation.

Still, all four stores have a massive presence in North and South Carolina. Whether Florence will have a negative impact (ruining produce and other food via outages and floods) or positive (increased customers before and after) is yet to be determined, but as it stands, it will definitely affect the overall portfolio of those major supermarket players.

James Mattone

James is a recent Boston University graduate who calls the world of esports and video games his home. As a young journalist, he has already covered two E3 expos a...

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