Safestay has transitioned from owning 1 hostel at the beginning of 2015 to a group with 4 UK operations and a great platform from which to expand and create shareholder value. The recent YE trading update was positive and momentum going into FY16 is strong. Notably, historical experience shows the hostel segment to be relatively resilient to macro weakness. Whilst patience is required for growth to come through the shares trading at effectively NAV offer compelling value.