The Richmond hostel was originally planned to open this year.

The Potomac Area Council, which operated the hostels in Baltimore, Harpers Ferry, W.Va., and Washington, bought the Richmond building for $525,000 in September 2011.

The project was then postponed by a merger with and reorganization of Hostelling International USA, said Bowden, the council’s former president. As part of the deal, Hostelling International USA contributed $760,000 to the local hostel.

Some of the renovation costs of the building might be offset by historic tax credits.

The city does not have an affordable accommodation like a hostel, said Jack Berry, president and CEO of Richmond Regional Tourism. The hostel can fill the need for tourists operating on a tight budget.

Berry is fascinated by the history of the building, which was completed in 1925. Otis Elevator occupied the spot until 1943. Various businesses then operated there before the state took over in 1947. It was most recently used as the Women’s Detention Center, which shut down either in late 2008 or 2009.

“I walked by for 20 years and never knew it existed,” Berry said.