A residential cruise ship offering extended around-the-world voyages abruptly halted operations on Tuesday after its operator reported running out of funds to cover fuel costs, leaving approximately 200 passengers stranded in Sihanoukville, Cambodia.
Villa Vie Residences, a Florida-based start-up, notified those aboard its 32-year-old ship, Odyssey, with just hours to disembark as it suspended service due to “extraordinary increases in fuel costs” and the need to explore restructuring and recapitalization options. The company cited a sharp rise in fuel expenses, particularly throughout Asia, where monthly fuel costs per cabin escalated from about $1,800 to as high as $8,000 since the outbreak of conflict involving Iran, which disrupted shipping routes through the Strait of Hormuz.
Villa Vie was part of a niche market of residential cruise ventures that marketed indefinite sea voyages where passengers could live aboard the ship at prices they considered more affordable than land-based living. Ownership packages ranged from $119,999 to $439,999, with fixed monthly fees between $3,500 and $11,000; a shorter five-year ownership plan started at roughly $50,000, supplemented by monthly charges. Flexible and short-term rental options were also available.
However, the company and others in the sector have struggled to fulfill their promises. In 2023, Miray Cruises, another long-duration cruise venture, collapsed amid operational delays and setbacks, leaving customers with financial losses. Villa Vie’s founder, Mikael Petterson—also involved with Miray—indicated that the firm’s financial model rested on full occupancy, which fell short following a downturn in sales after the escalation of tensions with Iran.
The Odyssey’s initial cruise was delayed for several months due to extensive repairs demanded by inspections in Belfast, Northern Ireland, a setback that proved costly and dampened customer enthusiasm. Although Villa Vie sold nearly 100 cabins to about 125 passengers prior to a planned May 2024 departure, occupancy rates remained insufficient to absorb the rising costs.
Attempts to impose a $1,500 monthly fuel surcharge were met with resistance, with some 70 percent of residents declining the fee, according to Petterson. Many customers reportedly advanced additional funds during the year to keep operations afloat.
Among affected passengers is Dana Teton, a 71-year-old retired salesman from Honolulu, who had rented a cabin for a five-week period beginning in June at a total cost of $12,000 for himself and his partner. Their itinerary, initially scheduled to include stops in Japan, Taiwan, and South Korea, was curtailed due to prohibitive fuel consumption, leading to impromptu visits to less-frequented locations such as Indonesia’s Anambas Islands and Tioman Island in the South China Sea. Despite the challenges, Teton described the experience positively and has since signed up for another trip.
Passengers stranded in Cambodia have mainly arranged accommodations independently, though Villa Vie indicated on Wednesday it would aid with onward travel and was working to charter a flight back to the United States early next week at an expected cost of about $1,100 per person.
Joel Greiff purchased a “Endless Horizons” lifetime prepaid contract for $350,000, which promised permanent residency aboard the Odyssey without monthly fees. He was aboard for just 26 days before operations ceased, equating to a daily cost exceeding $13,000.
Looking ahead, Villa Vie plans to focus on restructuring efforts over the next 60 days, maintaining a minimal crew of six to care for the ship. Petterson acknowledged that unless new investors are secured, the vessel may be sold to satisfy creditors and cabin owners according to outstanding financial claims. The outcome of these efforts remains uncertain.