Power station turned into luxury hotel in South Africa – costing up to R7,600 per night

·27 Apr 2026

An old 1930s power station has been turned into the 5-star Turbine Hotel & Spa in Knysna, costing anywhere from R5,000 to R7,600 per night.

Knysna has a long history shaped by shipping, timber and industry, before evolving into one of South Africa’s most sought-after coastal destinations.

Property values along the Garden Route have surged 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.

He established shops, built a port and launched a timber business that exported hardwood globally, setting the tone for Knysna’s early economy.

Timber would remain central to the town’s growth for decades. 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 current power station building, which still stands today, was constructed around 1939 and 1940, and it eventually formed part of the national grid operated by Eskom.

Industrial activity on the island declined in the late 20th century. In 1974, the logging operations were taken over by another owner, but environmental concerns led to their closure in 1980.

The land was later redeveloped into a marina, reshaping the area into a high-end residential and tourism hub.

The power station itself 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 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.

Original features such as the wood-fired boiler and four electricity generators were restored and integrated into the hotel’s interiors.

The hotel now offers a range of accommodation, including standard and luxury rooms, a honeymoon suite and two self-contained suites.

Each room has been individually designed, with décor themes reflecting aspects of Knysna’s cultural and natural heritage.

The hotel noted that, despite the limitations of working within a heritage structure, the interiors have been adapted to create spacious and light-filled living areas.

Some rooms include balconies overlooking the lagoon or the island’s canals, while others feature baths with views across the water.

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.

According to SA Venues, accommodation at the converted power station typically ranges from about R5,000 to R7,600 per night for two people sharing.

Prices vary depending on factors such as the season, room type and whether meals are included, so check the official Turbine Hotel website for real-time rates and special offers.