From Industrial Powerhouse to Luxury Retreat: The Historic Transformation of Knysna’s Turbine Boutique Hotel and Spa

Discover how a 1930s timber mill and power station became the luxury Turbine Boutique Hotel and Spa on Knysna's Thesen Islands. Heritage meets 5-star comfort.

By: AXL Media

Published: Apr 24, 2026, 8:08 AM EDT

Source: Information for this report was sourced from Daily Investor

A Living Monument to Knysna’s Industrial Heritage

The Turbine Boutique Hotel and Spa stands as a unique architectural fusion of industrial history and modern luxury. Located on Thesen Islands in Knysna, the site was originally a 1930s timber mill and power station that once served as the primary electricity source for Knysna and Plettenberg Bay. Today, the 5-star establishment offers a "living museum" experience, where the original wood boiler, four electricity generators, and various refurbished technical components are seamlessly integrated into the hotel’s aesthetic and guest facilities.

The Historical Foundations of Thesen Islands

Knysna’s economic identity was forged through timber extraction and maritime trade, beginning in the early 19th century. Following the arrival of George Rex in 1804, the area became a global exporter of hardwoods. The Thesen family, arriving from Norway in 1870, further industrialized the region. In 1904, Charles William Thesen purchased Paarden Island (now Thesen Islands), and by 1922, he utilized timber waste to fuel a power station. This operation supported the local Eskom grid for decades, providing the energy that powered the growth of the Garden Route until the mid-1970s.

Decommissioning and the Path to Redevelopment

The industrial era of the island began to wind down in the late 20th century. After the conglomerate Barlows purchased the logging operations in 1974, the site was eventually decommissioned in 1980 due to environmental concerns. The power station itself ceased operations on June 26, 2001. While initial concepts for a museum failed to materialize, the site was acquired in 2007 by the current owners, Geoff Engel and Dandre Lerm. After three years of rigorous rezoning and specialized construction to preserve its heritage status, the hotel officially opened its doors on August 12, 2010.