Villa Vie Residences has suspended operations of its residential cruise ship Villa Vie Odyssey in Cambodia after rising fuel costs placed its operating model under financial pressure. Residents were instructed to disembark by 2:00 p.m. on October 27th, while crew members remained aboard to maintain the vessel and its essential systems.
The company said it was evaluating restructuring and recapitalisation options following a sharp increase in fuel expenses across the regions where the ship operates. Monthly fuel costs per cabin, which had historically averaged ~US$1,800, had risen to an estimated US$6,000–US$8,000 in parts of Asia. Villa Vie said the increases could not reasonably be passed on to residents and had created an unsustainable financial shortfall.
Executive Chairman Mikael Petterson attributed the higher costs to the conflict involving Iran, which began in late February. He said the company had reduced fuel consumption by slowing the itinerary and spending more time in port, but these measures had not offset the additional expenses. The company is working towards restructuring and recapitalisation over the next 60 days, although no outcome has been assured and no financing agreement or transaction has been finalised.
Villa Vie Residences said it was coordinating disembarkation and seeking temporary accommodation arrangements for affected residents, while also addressing the impact on crew and employees. The company has not confirmed whether the cruise will resume or whether passengers will receive refunds.
Villa Vie Odyssey, which accommodates up to 970 passengers, began its perpetual world cruise in 2024 after a four-month delay caused by last-minute repairs. Some residents had sold their homes to live aboard the vessel. The company’s residential ownership model has advertised upfront prices starting at US$119,999, with monthly costs of up to US$5,000.