$90 million to breathe new life into QE2

$90 million to breathe new life into QE2 Muaz Shabandri (muaz@khaleejtimes.com) / 8 July 2013 Dubai’s plan to build a majestic floating hotel from the retired ocean liner Queen Elizabeth 2 (QE2) finally seems to have hit the right note with a change of ownership and new project completion dates. The cruise liner will now be owned by QE2 Shipping, a Dubai Government entity which will oversee the project’s development and take over operations from Istithmar, the private equity arm of Dubai World. Plans to restore the massive ocean liner are expected to be complete by late 2014 as a private group of investors will finance the project estimated at a cost of $90 million (Dh330 million). Refusing media speculation questioning the ship’s future, a senior official from the company confirmed the project would continue as planned and restoration would start soon. “We received many emails speculating the future of QE2. We will not respond or react to any speculation nor reveal our plans to any third party,” said Khamis Juma Buamim, Chairman of QE2 Shipping and QE2 Holding Limited. He refused media reports speculating a possible sale of the cruise liner as he said: “There is no need to sell the QE2. We are not scrapping or destroying it. The ship is ours and we will take care of it. We will deliver an iconic project for the world to romance and relish.” A consortium of ‘big investors’ are expected to fund the ship’s transformation as part of a 15-year renewable deal under the QE2 Holdings Limited. Details about the investors were not released at a press briefing hosted at Dubai Maritime City. Currently, the ship is undergoing repair works at the Drydocks World in Dubai. So far, seven of the ship’s nine engines have been restored and technical teams from the Drydocks World are working on bringing the vessel back into class to enable her sail on her own steam to the Far East. “This is going to be an iconic concept in the global market. There is huge potential in Asia and the Far East and many countries would like to host such a ship,” said Khamis. Unveiling plans for the future he noted that the original design had been slightly modified to increase capacity to a 400-room all suite hotel on board the liner.  “Requests for proposals have already been sent to design houses and the intention is that submitted designs will be placed on the website where public opinion will be invited against set criteria to choose the best design,” he added. Once technical works are completed by mid-August, a major sail-off party will be hosted in Dubai on October 18 to bid farewell to the QE2. It is expected to reach Singapore on November 1 where it will be berthed for three days before proceeding to Hong Kong and finally reach a shipyard in China where the transformation will be completed. Restoration works are expected to take between 8 to 12 months. Once complete, the ship will be maintained at an annual cost of $2.5 million. The final destination of the floating hotel has not yet been decided. “We are in discussions with different governments and negotiations are ongoing to decide the location,” the official said. Special memorabilia from the ship’s interior have been removed and shipped in air-conditioned containers to Singapore where they will be stored at a secured warehouse. These memorabilia will be reassembled after renovation works have been completed.   Taylor Scott International