It is reported that Buffalo-based Delaware North Companies is to take over hotel operations aboard the historic Queen Mary liner.

The company will be replacing Hostmark Hospitality Group which was hired by developer Save the Queen, buyers of the iconic ship and its surrounding assets from the city of Long Beach for US$43m in 2007. Master lease rights defaulted to lender Garrison Investment Group in February, after Save the Queen failed to meet its financial obligations. Previous leases have also included control of 45 acres of the adjacent Long Beach Harbor along with 11 acres of water rights.

Queen Mary - built in Clydebank, Scotland, weighing 81,237 gross tons and launched in September 1934 - retired from passenger service with shipping line Cunard in September 1967 and has been drydocked in Long Beach, California since December of the same year. It welcomed its first visitors in 1971. Delaware North is one of the largest privately owned companies in the US, generates US$2bn in annual revenue and employs approximately 50,000 people. It has operations in hospitality and travel, food service, parks and resorts, gaming and entertainment and sports teams and venues.

The firm manages the Kennedy Space Center Visitor Complex and Yosemite National Park, a US$100m operation that includes restaurants, lodging and all guest services. Globally, Delaware North has a presence in the UK, New Zealand and Australia, where it recently acquired five resorts. Local media says that the company will assume operations aboard 'Queen Mary' during September.

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