The "flashpackers" will feature 390 beds in 78 rooms, ranging from 12-bed dormitories on the first floor, to hotel-style en suite private rooms on the third floor.
Bookings opened last August and marketing has begun online, by brochure, on radio and television, at the Tourism Rendezvous New Zealand conference and through the Nomads network.
Late last month, the Queenstown Times was given an exclusive tour of the downtown development by Nomads New Zealand operations manager Shannon Smith (of Wellington), Bayleys Real Estate leasing specialist Marty Barwood (of Queenstown) and GW Property Group co-director Rob Gardos (of Sydney), while the stone, copper and glass-fronted building was being fitted out.
Guests will enter the Church St foyer, which will feature a 24-hour reception desk and office, a travel agency open from 8am to 8pm, lift entrance and 24 internet terminals.
The dorm rooms range from 12 beds, at $24 a night, to four beds, at $32 a night.
Each dormitory includes individual wall lights above beds, heat pumps and double-glazed doors opening on to balconies shared between two rooms.
The first floor features a sauna, the communal commercial kitchen, dining area above an atrium and lounge area.
The lounge will feature a dozen leather sofas, wood-panelled fireplace, hot-water bottles, blankets, pool table and bookshelves to create a cosy "library feel", Mr Smith said.
Between 20 and 30 bean bags will be placed in front of a 50-inch television, with Sky, a DVD player and surround sound, in the adjacent TV room.
Third-floor private rooms will have twin or king-size beds, with plasma TV, Sky, polished aluminium lamps, heat pump, desk, wardrobe and en suite bathroom.
Nomads will be covered by Wi-Fi and closed-circuit television cameras.
Dorm doors will be operated by swipe key cards.
The hostel will be managed by Aimee Jeffrey, of Queenstown, who has worked for Kiwi Experience, the Black Sheep Backpackers Lodge and Awesome Adventures.
Her staff of seven New Zealanders, one American and a Welshman have been familiarising themselves with 10 Queenstown activities over the past two weeks.
Mr Gardos said the building was GW Property Group's first investment in Queenstown.
The project began in May 2005.
"We're very proud of this building. We think the worksmanship is excellent and the architect has done an amazing job.
"It's great for Queenstown and will age very gracefully. I hope it will be here for 100 years at least."
Mr Smith said the resort was New Zealand's best tourism market.
Mr Barwood said five out of the nine retail spaces for lease on the ground floor had been taken.
