Dubai to convert QE2 into 300-room floating hotel
Dubai is to relaunch the iconic QE2 cruise liner as a 300-room luxury floating hotel, as part of plans to transform its current home at Port Rashid into the emirate’s newest tourist attraction, it was announced on Monday.
The 293m long vessel was bought from Cunard for around US$100m in June 2007 by Istithmar, an investment company owned by the government of Dubai.
Originally set to be refurbished as the central attraction in a maritime-themed development on Palm Jumeirah, this plan was scrapped in the wake of the financial crisis and the downturn in the Dubai property market.
The cruise terminal at Dubai’s Port Rashid is now set to become the liner’s permanent home and it will be converted into a 300-room luxury hotel, with the terminal developed to include a maritime museum. The refurbishment work is expected to take 18 months to complete.
Matthew Green, Head of Research & Consultancy UAE, CBRE Middle East told Hotelier: “Dubai continues to diversify its tourism offer and the spectacle that is the QE2 will be another important draw for visitors to the emirate. To be positioned in the new cruise liner terminal at Port Rashid the new luxury floating property will aptly sit alongside the proposed maritime museum. With tourism numbers already estimated to be up around 10% again this year, it is likely that further hospitality projects will be launched as parties look to exploit the favourable conditions with demand for now seemingly unabated.”
Neither Istithmar nor DP World, which runs Port Rashid, gave details on how much the redevelopment of QE2 and the shipping terminal would cost, or who would provide financing.
According to Bloomberg, Istithmar is currently in talks with three hoteliers, including Jumeirah Group, to manage the property.
“The vessel is truly iconic and has a huge following around the world. Our vision is to enhance the facilities on board but retain the very strong sense of history that is a fundamental part of her attraction,” HE Sultan Ahmed Bin Sulayem, chairman of Istithmar World, said in a statement.
“Together with the planned Maritime Museum, it reinforces Port Rashid and Dubai’s status as a leading cruise and maritime tourism destination. We are excited about the potential for Port Rashid to further develop as a tourist destination in its own right,” added Mohammed Al Muallem, senior vice president and managing director of DP World for the UAE Region.
The 44-year old vessel has remained moored at Port Rashid since October 2011, but it was resurrected as a hospitality venue last year when it played host to a red carpet New Year’s Eve party with minor celebrities, fireworks and entertainment.
Organisers claimed the party would mark a “new lease of life” for the vessel since it was retired in 2008, making its last commercial voyage from Southampton to Dubai.
It was retired in 2008 and made its last voyage to Dubai that year, when it joined trophy assets such as luxury New York retailer Barneys and Cirque du Soleil in Istithmar’s portfolio.
Dubai’s Port Rashid has seen a rapid rise in business from the cruise industry and hosted 108 ships with 396,554 passengers in 2011.
In the first six months of 2012, 71 vessels with 275,000 tourists have moored in Dubai, with this set to rise to 145 cruise ships and 500,000 passengers by 2015, according to Dubai Tourism and Commerce Marketing (DTCM), DP World’s strategic partner.
Reporting by Shane McGinley