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DUBAI, June 18 (Reuters) - Dubai has agreed to buy the Queen Elizabeth 2 for $100 million and turn the famous cruise ship into a floating hotel off the Gulf emirates' man-made islands, state-owned private equity firm Istithmar said on Monday.
The QE2 is the longest-serving ship in the 168 year history of the Cunard line, which is owned by Carnival Corp (CCL.N: Quote, Profile , Research), the world's largest cruise operator, Istithmar said in a statement.
Istithmar is the investment arm of Dubai World, the government agency that owns real-estate developer Nakheel, which is building three palm-frond shaped islands off Dubai's coast.
Personally I'm surprised that her career has lasted so long. She's outdated and her reputaion is so much bigger than the reality. I assume that he bookings are not as strong as they once were.
Some people seemed to think that she could cruise forever. I bet the sales of cabins for the tandem crossing are about to go through the roof!
BBC News Coverage
The Gulf's climate will help preserve the ship far better than the UK's wet climate ever would. She's quickly rot away at Southampton. However unfortunately most hotel ships quickly deteriate and struggle to generate a real profit. Many of her cabins (even after a total refit) are never going to be up to luxury hotel standard.
[ 06-18-2007: Message edited by: Malcolm @ cruisepage ]
The ship, which was launched by Her Majesty The Queen in September 1967, 40 years ago this year, is the longest-serving ship in Cunards 168-year history, and was their longest-serving flagship. Since she came into service in 1969, she has undertaken 25 world cruises, has crossed the Atlantic more than 800 times and has carried more than 2.5 million passengers.
QE2 has been 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.
Carol Marlow, president and managing director of Cunard, 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.
Sultan Ahmed bin Sulayem, chairman of Dubai World, 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.
Istithmar said its refurbishment programme will aim to recreate QE2s original interior décor and fittings. QE2 at The Palm Jumeirah will also include a museum celebrating the rich history of the ship.
ENDS
For further information:
Cunard: Eric Flounders, Corporate Communications Manager, on + 44 207 940 5390 / eric.flounders@cunard.co.ukMichael Gallagher, Corporate Communications Executive, on +44 207 940 5391 / michael.gallagher@cunard.co.uk
Dubai World (Istithmar): Greg Moore, Four Communications, on: + 971 50 794 4923 or +44 7748 968695 / greg.moore@fourcommunications.com
The Palm Jumeirah (Nakheel): Charlie Taylor, PR and Communications Manager, Nakheel, on: + 971 50 5538459 / Charlie.taylor@nakheel.com
Images of QE2 can be downloaded from www.nakheelmediacentre.com
Notes to editors:
1.The Palm Jumeirah
The Palm Jumeirah is currently the worlds largest man-made island and home to a residential, tourism and leisure destination created by Nakheel.
The Palm Jumeirah is a landmark in engineering, providing luxury residences, retail and leisure facilities across three main areas the trunk, the crescent, and the fronds. Over the next five to six years, The Palm Jumeirah will become one of the worlds premier resorts, offering more than 30 beachfront hotels, including Atlantis, The Palm. The 17 fronds which form the head of The Palm Jumeirah will be home to some of the most luxurious villas in the world each with its own beachfront.
Nakheel is one of the worlds largest privately held real estate developers, and a key player in realising the vision of Dubai for the 21st century: creating a world class destination for business and tourism.
2.Cunard
Cunard Line was formed in 1839 principally to carry the Royal Mail between the UK and North America, and in doing so inaugurated in 1840 the first timetabled steamship service across the Atlantic. The company now operates the only scheduled passenger service across the Atlantic, along with world-wide voyages on the most famous (and only) ocean liners in the world. These legendary voyages offer like-minded travellers the epitome of British refinement through impeccable White Star Service®, fine dining and the elegance and grandeur of these iconic vessels. Cunards current fleet consists of Queen Mary 2, the world's largest and grandest liner, and Queen Elizabeth 2, the world's fastest and best known liner. The 1,980 passenger Queen Victoria, a truly Classic Cunarder, will join the fleet in December 2007.
Cunard Line is part of Carnival Corporation & plc, which is the largest cruise holiday group in the world, with a portfolio of cruise brands in North America, Europe and Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn Cruise Line, AIDA Cruises, Costa Cruises, Cunard Line, Ocean Village, P&O Cruises, and P&O Cruises Australia. These brands operate 80 ships totaling 149,000 lower berths. Carnival Corporation & plc also operates the leading tour companies in Alaska and the Canadian Yukon, Holland America Tours and Princess Tours. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices. Combined, the companies attract seven million guests annually.
3.Istithmar and Dubai World
Istithmar PJSC is the investment company of Dubai World. It is 100 per cent owned by Dubai World, which is in turn wholly owned by the Government of Dubai. It has an investment portfolio which includes more than 50 successful companies. The real estate business aims to acquire and manage a distinguished and diversified portfolio of properties in commercial property, hotels and resorts, the leisure sector and in retail. Existing investments include Kerzner Group, International Hotel Investments, Mandarin Oriental in New York, The Adelphi in London, Jumeirah Golf Estates and Cape Towns V&A Waterfront.
Dubai World is the holding company which manages and supervises a portfolio of businesses and projects for the Dubai Government, working towards making Dubai the leading hub for trade and commerce. Dubai World has more than 50,000 employees in more than 100 cities around the world and its companies include DP World, P&O, Nakheel, Istithmar PJSC, Inchcape Shipping Services and Tejari. Date Posted: 18.6.2007
Greetings Ben.
She will however be an added attraction to tourists, which is what they are aiming for - the biggest tourist destination of the world. She will be in good company with an Atlantis Hotel, Four Seasons, Fairmont, Kempsinki; under the shadow of the Burj.. but will she attract custom in her own name? Will she pull people from the malls, water parks, ski domes etc? Her current rates are cheaper than the majority of hotels in Dubai too, so they will have to go up, and she will need a complete refurb. They have the money so let's see. I have reservations, Duabi is a 'playground' for tourists, a good one, but can QE2 fit?
Pam
quote:Originally posted by PamM:Well a surprise indeed. As much as I like the Gulf region this is not the place for QE2 imo. She will need a heck of a lot of up keep in that heat especially to her decking. Everything else in Dubai is new, state of the art, the most modern, the most luxurious, the most expensive, the largest, biggest, tallest blah blah, just go on a bus tour.. LOL.. QE2 is none of these, a famous ship but that's all [to them].She will however be an added attraction to tourists, which is what they are aiming for - the biggest tourist destination of the world. She will be in good company with an Atlantis Hotel, Four Seasons, Fairmont, Kempsinki; under the shadow of the Burj.. but will she attract custom in her own name? Will she pull people from the malls, water parks, ski domes etc? Her current rates are cheaper than the majority of hotels in Dubai too, so they will have to go up, and she will need a complete refurb. They have the money so let's see. I have reservations, Duabi is a 'playground' for tourists, a good one, but can QE2 fit?Pam
On BBC they talked returning here in original state as build. With original fittings etc. etc.
BBC
Greetings Pam.
quote:Originally posted by PamM:[...] Everything else in Dubai is new, state of the art, the most modern, the most luxurious, the most expensive, the largest, biggest, tallest blah blah, just go on a bus tour.. LOL.. QE2 is none of these, a famous ship but that's all [to them].[...]
[...]
I think it is (again) her name that saved her - even non ship enthusiasts know Queen Elizabeth 2 and associate it with luxury ship.
I am surprised to hear that today but I am not shocked - one had to expect that - and Cunard certainly could not afford to scrap her in Alang.
Giving that there are not too many older ships left it's a good solution. It will be very interesting to see what they do with her. (I guess we all agree that it will take a lot of work to make her a tourist attraction and a luxury hotel)
[ 06-18-2007: Message edited by: Ernst ]
Dubai swoops for QE2 Monday 18 June 2007
DUBAI has agreed to buy the Queen Elizabeth 2 for $100 million and turn the famous cruise ship into a floating hotel off the Gulf emirates' man-made islands, state-owned private equity firm Istithmar said today.
The QE2 is the longest-serving ship in the 168 year history of the Cunard line, which is owned by Carnival Corp, the world's largest cruise operator, Istithmar said in a statement.
Perhaps they (Cunard) were initially planning to keep QE2 in service longer, but then got a $100 million offer they couldn't refuse? After all, the sale price must be double of what the old lady is actually worth on the secondhand market.
Then again, $100 million sounds like a very "round" figure, so perhaps the actual sum has been adjusted slightly for the sake of the press release... Also, we should have known something was coming as Cunard has been making so much out of the 40th Anniversary of QE2's launch this September.
[ 06-18-2007: Message edited by: shipsnorway ]
It looks as if the sale of the QE 2 will meet about a quarter of the costs of the new Cunard ship Queen Victoria.
With QE2 now going to Dubai it looks as if the stories about them being interested in the ex ss France/Norway, as a hotel there, could have been correct.
Neil ( Bob )
One good thing to come from this sale will be that with the dryer climate in Dubai the QE2 should be easier to maintain.
[ 06-18-2007: Message edited by: Neil Whitmore ( Bob ) ]
quote:Originally posted by Neil Whitmore ( Bob ):[...]With QE2 now going to Dubai it looks as if the stories about them being interested in the ex ss France/Norway, as a hotel there, could have been correct.Neil ( Bob )
Why? Are these the same investors? Also, QE2 is a very different case - she is an intact ship and extremly well know.
quote:Originally posted by Ernst:Why? Are these the same investors? Also, QE2 is a very different case - she is an intact ship and extremly well know.
So what ? France/Norway is well known too and was available for 4 years. If those investors wanted a famous vintage ocean liner, I can't imagine they wouldn't have considered the Norway as an option, and perhaps as their first option (as she was available). Technical (un)feasability of a Norway project may have led those investors to make a bid on QE2, certainly easier and cheaper to convert.
quote:Originally posted by Pascal:So what ? France/Norway is well known too and was available for 4 years. If those investors wanted a famous vintage ocean liner, I can't imagine they wouldn't have considered the Norway as an option, and perhaps as their first option (as she was available). Technical (un)feasability of a Norway project may have led those investors to make a bid on QE2, certainly easier and cheaper to convert.
As much as I love the France and as much as I would have prefered to see her preserved - QE2 has the better reputation.It might not be fair, but 'anyone' knows QE2 - she IS the best know ship in the world - and not only that - people associate 'luxury' with QE2 - I may assume that this is a PRIME reason why people like to see her being part of such a prestige project.
The Norway/France on the other hand served as a three star ship for two decades and during her last years she certainly did not come up to industry standards anymore - she is hardly know by the public - AND she suffered a boiler explosion - which could turn any refit into a nightmare.
But PLEASE let us not now assume that every ship will be good for this purpose just because it can happen for QE2, first off all she is a one off and secondly can you imagine what the coastlines of the world would start to look like if all retired ships ended up as hotels !
Ships are not designed to be hotels once their useful life is over, they are designed to scrapped and frankly there is some dignity in that end as well, they go as they were built..............
That said on my next visit to my sister who lives there after her arrival in Dubai I will be straight down to visit. Let us hope that in this instance the conversion will be done with some restraint (some would say taste) and she is not given one of their more flamboyant makeovers ! Personally I hope they keep the current theme on board rather than revert to her original interiors, I think she currently looks decor wise (as in theme) better than she ever has done.
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