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The world's most famous cruise ship, the Cunard liner QE2, will retire from service in November 2008 and and become a luxury floating hotel in the Persian Gulf, it was announced on June 18th.

The 70,000-ton vessel is being sold to the Dubai World company for $100 million and will be berthed after refurbishment at a specially-constructed pier at The Palm Jumeirah development in Dubai where she will be a floating hotel, retail and entertainment destination.

The QE2, launched in 1967 by Queen Elizabeth II, is the longest-serving ship in Cunard's 168-year history, crossing the Atlantic Ocean more than 800 times and carrying more than 2.5 million passengers.

The Palm development is the world's largest man-made island, where luxury properties -- owned by a galaxy of stars -- stretch out into the Persian Gulf off the shore of Dubai.

The company purchasing the vessel said the aging liner will be refurbished to recreate QE2's original interior decor and fittings.

"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.

An earlier Cunard Liner, the Queen Mary, is permanently berthed as a hotel in Long Beach, California.

Prior to leaving the Cunard fleet, the QE2 and the liner which replaced her on the trans-Atlantic route, Queen Mary 2, will be joined later this year by the new Queen Victoria.