Nakheel says QE2 hotel project 'ongoing'

Developer Nakheel said on Friday it was still committed to its plans to convert the famous QE2 into a luxury hotel development despite the impact of the global economic crisis.

The Dubai-based master developer said that the scheme was "ongoing" and that they were "investigating all options".

The company's comments come after reports circulating on numerous maritime sites on the internet, suggested that the plans for QE2’s transformation into a floating hotel and tourist attraction could be sunk by the effects of the international credit crunch.

“The plans for QE2’s full restoration and refurbishment are ongoing as we continue to investigate all our options in leveraging this fantastic asset. We have no intention of selling the ship to any party whatsoever,” said a Nakheel spokesman in comments published by the UK's Southern Daily Echo in Southampton.

QE2 has been moored at a berth in Dubai for three months after arriving in Nov 2008.

Nakheel said at the time that it was in talks with major hotel operators with a view to handing over the running of the QE2 hotel.

While no names have been revealed, it will be "most likely" a hotel operator will be chosen that Nakheel already has done business with, according to Manfred Ursprunger, CEO of Nakheel Hotels, QE2 Enterprises.

The hotel will comprise 200 rooms which will all be a minimum of 50 square metres and of these, around 10 per cent will be suites.

There will also be a 500-seat luxury theatre which will host productions rivalling those in London's West End and Broadway, as well as a 5,000 square metre indoor and outdoor wellness centre and spa.

Other features include five restaurants and three-star Michelin chef Michel Roux will be in charge of the menus.

The ship will be able to hold 1,500 guests, including guests just visiting for dinner.

The ship will form the centrepiece of the QE2 precinct, on Palm Jumeirah which will also include a land area, complete with residential units and a yacht club.