The college hopes to have a roll of 250 next year - 140 new enrolments plus the 110 who are part-way through a two-year course.
The Fernhill-based Queenstown Lodge, placed in receivership in December last year and valued then at $6.8 million, has 130 beds in 56 rooms, together with four self-contained apartments, licensed restaurant and bar, lounge-games room, spa and sauna complex, and reception area.
Queenstown Resort College chief executive Charlie Phillips said the price the college was paying for the premises was "confidential until it's settled", which was expected to be at the end of this month.
However, he said in a statement it was a "major financial investment" that would future-proof the college's infrastructure needs and marked the first step in its long-term vision - establishing a student campus in the resort.
Mr Phillips said the college had spent more than a year looking for the right site to accommodate its students.
Until now it had been leasing apartments around the town.
The newly acquired 1.3ha site had 5700sq m of usable land remaining, which would be developed, he said.
Owning accommodation meant the college had control over its intake numbers and could easily meet demand.
Until now, QRC "at its peak" had leased 20 apartments in Queenstown, with a total of about 80 rooms.
"This will be a more controlled, better environment for them [the students],"Mr Phillips said.
Rent would be comparable to other halls of residence around New Zealand.
A twin-share room would cost $260 a week, with a single priced between $320 and $350 per week, with power and meals.
All rooms had en suite bathrooms and students would be provided with breakfast seven days a week and dinner five nights a week.
The "community kitchen" would be available to prepare other meals.
QRC opened in 2006 with nine students and expanded to 160 this year.
About 85% were domestic students who paid $12,500 a year.
International students paid up to $16,000.
