QE2 to become floating Dubai hotel

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The 70,000-tonne vessel, launched by the Queen in 1967, is to be sold to the Dubai World company in a £50 million deal.

The famous ship will be delivered to Dubai World in November next year and will be berthed, from 2009, at a specially-constructed pier at The Palm Jumeirah development in Dubai.

The Palm development is the world's largest man-made island, where luxury properties - owned by a galaxy of stars - stretch out into the Persian Gulf off the shore of Dubai.

Dubai World, whose investment arm Istithmar has made the purchase of the QE2, already owns shipping company P&O.

Istithmar said its refurbishment programme will aim to recreate QE2's original interior decor and fittings. QE2 at The Palm Jumeirah will also include a museum celebrating the rich history of the ship.

Cunard president and managing director Carol Marlow said: "We are delighted that, when her legendary career as an ocean liner ends, there will continue to be a permanent home for her that will enable future generations to continue to experience fully both the ship and her history."

Dubai World chairman Sultan Ahmed bin Sulayem said: "QE2 is without a doubt one of the wonders of the maritime world, and is easily the most famous serving liner in the world today.

"I am delighted we will be able to create a home for her on the newest wonder of the world, The Palm Jumeirah.

"QE2 at The Palm Jumeirah will become one of the must-see experiences of Dubai and of the Middle East. We are investing in creating a truly global tourism destination. Dubai is a maritime nation and we understand the rich heritage of QE2. She is coming to a home where she will be cherished."