Auckland property developer Philip McNicholl said Oamaru Poshtel could be open as early as nine months from now if all goes to plan.
"We think that we can come out with an attractive boutique product," he said on Thursday.
McNicholl’s plans included 15 double bedrooms with ensuite toilets and shared facilities, including a basic kitchen area.
He had an interest in collecting art and an art gallery was also planned. The Lonely Planet describes a "poshtel" as a luxury hostel that "combines the style and comfort of a boutique hotel with the price and sensibilities of a hostel".
"They’re all around the world now, but for some reason it hasn’t hit the New Zealand market," Mr McNicholl said.
Mr McNicholl said the project was early in its development stage and structural engineering work was under way for earthquake strengthening.
Construction work could begin before the end of this year, he said.
The sale of the central Oamaru building was reported in the Otago Daily Times at the beginning of May. A motor-home trip last year with his wife and teenaged children included a stop in Oamaru to visit Steampunk HQ, Mr McNicholl said.
"I just thought it was a cool little town and I have had an interest in it since that visit."
