A second wing was also being developed but would not be opened immediately. Eventually, the backpackers should accommodate 36 people.
It will also have a cafe for morning teas and lunches which will be open to the public.
Mr Perry said backpackers was the expansive end of the tourism sector.
"It's a growing market and backpackers has become a generic term - it's about tourists who stay longer but spend a relatively smaller amount of money on accommodation.
"While, in the past, the average age of backpackers might have been late teens and early 20s, the term now covers people into their 30s and 40s who are using this type of accommodation."
The accommodation business in Wanganui had been under pressure for several years but there were new ways of doing things, he said.
"We believe accommodation providers and tourist operators need to work together with each other and the council to create strategies for encouraging visitors to extend their stay in Wanganui and to have a more positive experience while they are here.
"Our guests at one facility will be offered an incentive to extend their visit with a stay at the other facility. We will also be offering packages that will include activities."
He said the old rest home was reasonably easy to convert.
"It's been well looked after - the rooms were generously proportioned and all have an en-suite, which will be appreciated. We had to add a few features such as check-in, but it wasn't difficult to adapt."
There will be a kitchen and dining room for guests, games room and laundry.
The property - which is on two acres - had a GV of $2 million but was offered for sale at $750,000.
Hikurangi Incorporated board chairman Pam Erni said the sale was "absolutely thrilling".
The property was sold for quite a bit below the list price but that was the current market.
"That the sale has been achieved in such challenging fiscal times is a credit to Bayleys and Bob Davies in particular," Ms Erni said.
"There was reasonable interest in the property from all over New Zealand and some inquiry from overseas but, as time went on, trustees found it necessary to meet the expectations of the market in order to facilitate a sale."
She said the new owners would look after the building that had been a rest home for 60 years.
"We wish them well in their new endeavour and are gratified that the home will be in the care of the Perrys who appreciate its history and who realised the potential of the property to deliver a quality experience to visitors.
"We are also encouraged that this new endeavour will provide employment opportunities that can only be good for Wanganui."
The proceeds of the sale will be distributed to charities for the elderly, probably in the middle of next year.
