South Africa’s hospitality property market has added a notable listing, with the St. James of Knysna hotel put up for sale at $3.7 million. The waterfront boutique property sits along the Knysna Lagoon in one of the country’s most established coastal tourism corridors.

The listing comes as investor interest in lifestyle-driven real estate continues to hold steady, particularly in destinations where tourism demand is supported by year-round travel, second-home buyers, and established leisure infrastructure.

Towns along the Garden Route have remained a consistent focus for buyers seeking operational hospitality assets rather than development land.

Set on a 10,594-square-meter waterfront site, the hotel is being sold fully furnished and operating as a going concern. It includes 18 rooms and suites across a restored manor house and courtyard buildings, with views stretching across the lagoon toward the Knysna Heads and surrounding landscapes.

Located in Knysna, the property sits a short drive from the town center and local waterfront district, placing it within reach of restaurants, retail areas, and outdoor leisure activities that support the regional tourism economy.

Waterfront hospitality asset

The St. James of Knysna operates as a boutique hotel with a mix of executive, deluxe, and junior suites, many with private balconies overlooking the lagoon.

The layout combines a historic manor house with modernized annex accommodation designed for both short stays and extended visits.

Guest facilities include landscaped gardens, two swimming pools, a gym, a lounge and bar, and event spaces used for weddings and private functions.

A private pontoon boat offering lagoon cruises adds a distinctive leisure offering that appeals to both domestic and international visitors.

Tourism appeal and investment profile

The property is positioned near major attractions, including Garden Route National Park, as well as nearby beaches, hiking trails, and golf courses such as Simola and Pezula.

The wider region is known for outdoor tourism, including boating, whale watching, and forest walks.

Marketed as a turnkey hospitality asset, St. James of Knysna offers flexibility for new ownership, with options to continue hotel operations or reposition the site as an exclusive private lodge.

The property also includes sustainability features such as solar power systems, water infrastructure, and backup energy support, with municipal charges estimated at about R25,600 ($1,579) per month.