Property

The South African 5-star hotel built inside a 1930s timber mill and power station

Kirsten Minnaar • 23 April 2026

Once a 1930s timber mill and power station supplying electricity to Knysna and Plettenberg Bay, the Turbine Boutique Hotel and Spa on Thesen Islands has been transformed into a 5-star heritage hotel.

Knysna, considered one of South Africa’s most popular holiday destinations, has a rich history spanning sailing ships, gold discoveries, and timber extraction.

The area was originally inhabited by the Khoisan until Dutch settlers arrived in the 17th century. Knysna’s documented history began in 1804 with the arrival of George Rex, rumoured to be the illegitimate son of King George III.

Rex opened shops and established a port and a timber business that exported hardwoods worldwide. In 1870, the Thesen family moved from Norway to Knysna and founded numerous business entities in the town.

In 1904, Charles William Thesen bought Paarden Island – now called Thesen Islands – where he began timber processing in 1922.

Wood waste from the timber mill was subsequently used to build a power station that generated electricity from turbines, which eventually supplied the towns of Knysna and Plettenberg Bay with electricity until the mid 1970’s.

The various structures were relocated around the island, often without documented plans, and were part of the Eskom power grid for many years.

The current power station site, which now hosts the Turbine Boutique Hotel & Spa and Island Café, was built around 1939.

A large industrial conglomerate, Barlows, purchased the island’s logging operations in 1974, but they were decommissioned in early 1980 due to their adverse environmental impact.

Barlows subsequently sold the site for redevelopment, and CMAI went on to develop the Islands into the internationally acclaimed marina development it is today.

It houses Thesen Harbour Town with its shops, restaurants and hotels, together with 596 residential houses and apartments, 19 interlinked islands and numerous canals.

The power station’s last day of operation was 26 June 2001. A museum concept never materialised, and the site was sold to the current Hotel owner and operators, Geoff Engel and Dandre Lerm, in September 2007.

Rezoning, approvals and building of the site took almost three years, and the full operation commenced trading on 12 August 2010.

The Turbine Boutique Hotel and Spa

Today, Knysna’s historic timber mill and power station site is home to the 5-star Turbine Boutique Hotel and Spa.

The development comprises 17 standard rooms, 6 luxury rooms, a honeymoon suite, and 2 self-contained suites adjacent to the hotel.

Each room provides guests with amenities such as a flat-screen TV, WiFi, a fully stocked minibar, and a tea and coffee station.

Visitors at the hotel can also make use of the 90-seater Island Café, the Gastro Pub, conference facilities, and a pool deck.

The Turbine Spa is considered one of the finest on the Garden Route, offering guests a wide variety of relaxing treatments, from massages to facials, as well as a Rhassoul Steam Room.

The hotel also has a jetty for motorised pontoon cruises and a host of modern facilities, which complement the refurbished facilities and equipment brought back to life around the property.

The hotel stands out among others in Knysna as a living testament to the history of this unique operation and site.

The original wood boiler, four electricity generators and much of the equipment have been fully restored and blend in with the hotel’s décor themes.

Each bedroom has been individually decorated and is themed and named to reflect Knysna’s cultural, historical and geographic diversity.

The industrial backdrop of bare bricks and whitewashed walls is complemented by pipes painted in vivid red, blue, green and orange, matched by dining chairs in different bright colours.