Owner Joel Hanlon has applied for consent from the Queenstown Lakes District Council to internally modify the building on the 758sq m site into six rooms.
The consent application said there would be a kitchen, a dining area, a lounge and bathroom facilities.
An outdoor barbecue area is proposed for the building's west side. There would be restrictions on night-time use of this area.
An on-site manager or night watch person would be present 24 hours a day. The backpackers would be open 24 hours a day, seven days a week.
No change was proposed to the external appearance of the building, which is in the high-density residential zone among a mix of residential dwellings, visitor accommodation, youth facilities and healthcare and adventure businesses.
There was no provision for on-site parking - guests would use the 10 car parks on the boundary of 21 Russell St.
The application said the effects of parking from the backpackers would be less than those from the building's previous use as a medical centre.
