A residential cruise ship designed to serve as a floating home for travelers circling the globe has abruptly halted operations in Cambodia, leaving hundreds of passengers scrambling for lodging after skyrocketing fuel expenses forced the operator to suspend its voyage.
Florida-based Villa Vie Residences ordered travelers off the Villa Vie Odyssey after the vessel pulled into the port city of Sihanoukville, Cambodian authorities and passengers reported. The company announced Tuesday that it could no longer absorb mounting financial losses triggered by soaring global energy prices linked to the conflict involving Iran.
Surging fuel bills derail voyage
The company said in a statement that monthly fuel costs per cabin, which previously averaged $1,800, surged to between $6,000 and $8,000 in parts of Asia. Villa Vie Residences noted that passing those massive hikes directly to travelers was not feasible, Business Insider and CBS News reported.
Villa Vie Residences stated that it attempted to manage consumption by reducing cruising speeds and spending more time docked in ports. However, those operational adjustments failed to counter the surge in petroleum prices, which tightened across Southeast Asia as maritime movement through the Strait of Hormuz faced heavy disruptions.
Long Dimanche, deputy governor of Preah Sihanouk province, told media outlets that the 642-foot vessel was carrying 203 passengers, the majority of whom are American citizens, along with 156 crew members. While the ship was built to house up to 650 residents, Cambodian officials stated that the liner arrived on Oct. 23 and is anticipated to refuel before departing on Saturday. The cruise operator has not publicly confirmed that departure schedule.
Short notice leaves travelers scrambling
Several residents reported receiving minimal warning before being required to evacuate their living quarters. Passengers Lanette Canen and Johan Bodin told Business Insider that a message from company management arrived around 6 a.m. Tuesday ordering everyone off the vessel by 2 p.m. that afternoon.
Retired travelers Paul and Lynn Montoya of Wyoming told Al Jazeera they had lived on the ship for 17 months and felt exhausted by frequent requests for additional funds, alongside declining amenities and food quality. Other residents, such as 62-year-old Barbara Fiegel, described returning to the docked liner to retrieve belongings from safes and pack bags while trying to secure local hotel accommodations, telling Business Insider that the vessel felt like a ghost town.
Villa Vie Residences Executive Chairman Mikael Petterson told Business Insider in an interview that talks with a potential financial backer collapsed last week, leaving the business without capital reserves. “I’m the villain in the story, but I’m doing everything I can to support the residents on a solution forward,” Petterson said.
Uncertain future for floating community
The Odyssey set sail from Belfast, Northern Ireland, in late 2024 on an ambitious itinerary originally intended to span three and a half years across seven continents. Built in 1993, the ship offered cabins for outright purchase or lease, with initial ownership rates starting around $119,000 and lifetime suites exceeding $230,000.
The company stated it is now evaluating restructuring and recapitalization strategies over the next 60 days while assisting displaced residents with temporary housing arrangements. Company officials emphasized that no specific outcome is guaranteed.
The abrupt halt follows earlier internal strains. In August, Chief Executive Kathy Villalba appealed to residents on an internal messaging network for urgent voluntary financial contributions to cover a 650-metric-ton refueling need, Business Insider reported. In addition, NBC News reported that a company that purchased a cabin for $469,000 filed a lawsuit last year accusing the operator of misrepresenting its financial stability, an allegation Villa Vie Residences has denied.
While some passengers have already boarded flights home or relocated to nearby countries, other residents remain in Sihanoukville hoping that new investors or a resident-led coalition can salvage the voyage.
