Cunard Line will sell the Queen Elizabeth 2 for $100 million to Dubai World, which plans to convert the 40-year-old ocean liner into a floating luxury hotel in Dubai, United Arab Emirates, Cunard said today.

Cunard said it will deliver the QE2 to Dubai World in November 2008, where it will be permanently berthed at a specially-constructed pier and made into a luxury floating hotel, retail and entertainment destination at the Palm Jumeirah, the world's largest man-made island.

The QE2 was purchased by Istithmar, the investment arm of Dubai World, a wholly owned company of the Government of Dubai. Nakheel, developer of The Palm Jumeirah, is also a Dubai World company.

"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," said Carol Marlow, president and managing director of Cunard, in a statement.

The ship will commence service in its new role in 2009, after it is refurbished and adapted for its new home, Cunard said. Istithmar said it aims to refurbish the vessel so as to recreate QE2's original interior decor and fittings and that it will house a museum of the ship's history.

"Dubai is a maritime nation and we understand the rich heritage of QE2," said Sultan Ahmed bin Sulayem, chairman of Dubai World, in a statement. "She is coming to a home where she will be cherished."

The QE2 was launched by Queen Elizabeth II in September 1967, 40 years ago this year, and is the longest-serving ship in Cunard's 168-year history, the line said. Cunard said that the ship has sailed 25 world cruises, has crossed the Atlantic more than 800 times and has carried more than 2.5 million passengers.

To contact reporter Johanna Jainchill, send e-mail to [email protected].

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