The boat is perched on top of the Queen Elizabeth Hall in the Southbank Centre, where it will stay for the next twelve months.
The idea is part of the London 2012 Festival and will provide a "postmodern sanctuary for reflection during the Olympic year".
The pod will be occupied by artists and writers for 10 days a month and by the paying public for 20 days a month, with a night's stay starting at £120.
The hotel is a collaboration between contemporary art group Art Angel and Living Architecture, an organisation founded by philosopher Alain de Botton that aims to bring together holiday rentals and idiosyncratic architecture, making the point that cutting edge design is for all.
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