April 28 2026 11:05

Knysna may be a town struggling with service delivery but pockets of development are continuing.
Recently a property called 6 Westhill went on sale in the town for R10.5m. Now we see that an industrial property has been converted to a luxury hotel.
This old 1930s power station was turned into the 5-star Turbine Hotel & Spa, which costs anywhere from R5,000 to R7,600 per night.
Property values along the Garden Route where Knysna is located have grown by around 35.5% on average over 5 years, with areas such as Knysna seeing a 70% rise in median prices, including those on Thesen Islands.
The town’s origins date back to 1804, when George Rex, a British-born entrepreneur, acquired land in the area and laid the foundations for its development.
Rex launched a timber business that exported hardwood globally, setting the tone for Knysna’s early economy.
In 1870, the Thesen family arrived from Norway and built a network of businesses.
In 1904, Charles William Thesen acquired Paarden Island, now known as Thesen Islands, where large-scale timber processing began in 1922.
It was waste from this timber industry that led to the creation of a power station. Wood offcuts were used as fuel to generate electricity, supplying both Knysna and nearby Plettenberg Bay until the mid-1970s.
The power station continued operating until June 2001. Plans to convert it into a museum never materialised, and in 2007, the site was purchased by Geoff Engel and Dandre Lerm.
The Turbine Hotel & Spa

After nearly three years of rezoning, approvals and construction, the building then reopened in 2010 as the Turbine Hotel & Spa.
Instead of pulling down what remained of the power station, the redevelopment incorporated it into the design.
The wood-fired boiler and four electricity generators were restored and integrated into the hotel’s interiors.
The hotel offers a range of accommodation, including standard and luxury rooms, a honeymoon suite and two self-contained suites.
The layout is divided into several wings, each positioned to take advantage of the surrounding environment.
The two self-contained suites, located slightly apart from the main building, provide additional privacy while still offering access to the hotel’s facilities.
These include living areas and kitchens, catering to longer stays or guests seeking a more residential experience.
Accommodation at the converted power station typically ranges from about R5,000 to R7,600 per night for two people sharing.
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