The building where the current Restaurant Dampfschiff, which means lake steamer in German, is located was built in 1805. The trapeze-shaped building "Laendtehaus" lay prominently between the Aare River and the Casino in Thun. While originally it was a mere eatery, the Knechtenhofer brothers turned it into a restaurant/inn in 1831, calling it Bateau a Vapeur (French for lake steamer). It was during this period that it became the shape it has today. In 1864, the Family Knechtenhofer retired and sold the building.

The building changed hands frequently in the latter half of the 19th century. The building was used for things other than a restaurant. Finally, the city of Thun bought it in 1971 and the architects Dorothea and Rolf Lemberg took it over. The new owners renovated and restored the building painstakingly in the following years. Then in 2002, the Restaurant Dampfschiff could finally reopen its doors in its former splendor, at least in the lower floors. The upper floors are used as living quarters.