Cunard Line has sold its famous cruise ship Queen Elizabeth 2 (QE2) to affiliated company Dubai World, who will turn it into a floating hotel and major tourist attraction.

The two companies revealed the deal on Monday. They said the British shipping company sold the cruise ship for 75 million euros (100 million dollars) to Dubai World. QE2 will no longer wander the seas and instead relocate off the artificial island The Palm Jumeirah in Dubai.

The Queen Elizabeth 2, active since the late 1960s, will make its retirement in November 2008, the companies said. By 2009, it will open as a new luxury hotel. Dubai World intends to maintain the cruise ship’s design. There is also a plan for a museum celebrating the ship’s career.

Sultan Ahmed bin Sulayem, the chief executive of Dubai World, said: “It makes me proud that we can give a new home to such an icon.”

Indeed an icon, the Queen Elizabeth 2 was christened by Queen Elizabeth II herself in 1967. The vessel has crossed the Atlantic Ocean more than its 800 times in its 40-year record career. The QE2 has also carried over 2.5 million passengers in its lifetime.

“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,” Sultan Ahmed bin Sulayem said.

The Palm Jumeirah is the world's largest man-made island.