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Dubai hotel for QE2

The majestic QE2 cruise ship is set to become a floating hotel after being bought by Dubai World.

The firm will pay more than £50 million for the historic ship, which this year marks its 40th year on the sea since the Queen first launched it in 1967.

Dubai World is the developer currently building 'The World', the enormous man-made islands in the Arabian Gulf that have become a magnet for super wealthy businesspeople and celebrities.

QE2 will be anchored by the islands from 2009, with the investors planning to refurbish the boat in its original period style, thus creating an utterly unique travel experience.

"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," Carol Marlow from Cunard, the ship's current owners, told the Metro.

"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," added Dubai World chairman Sultan Ahmed bin Sulayem.