A residential cruise ship that had been sailing around the world for two years came to an abrupt stop on Tuesday after its operators said they had run out of money for fuel, leaving passengers stranded in Cambodia.
Villa Vie Residences, a Florida-based start-up, gave the 200 passengers just hours’ notice to disembark from its ship, Odyssey, while it was docked in the Cambodian port city of Sihanoukville.
The company said it had suspended operations while it worked to address “extraordinary increases in fuel costs and evaluate restructuring and recapitalization alternatives.”
Villa Vie was one of a number of companies that marketed endless, around-the-world cruises, on which passengers could live less expensively than on land. Its priciest options, which provided ownership of a suite and permanent residency on the Odyssey for the life span of the ship, cost from $119,999 to $439,999, plus fixed monthly fees of $3,500 to $11,000; a five-year ownership plan started at $49,999 plus monthly fees. There were also flexible and short-term rental rates.
But few of the companies have been able to deliver on their promises. In 2023, a three-year cruise offered by Miray Cruises, collapsed after delays and operational mishaps, leaving would-be passengers out hundreds of thousands of dollars. The World is the only financially successful residential cruise ship in operation, using a private co-op ownership model in which passengers pay millions to buy onboard apartments.
Global fuel prices have surged since the outbreak of the war in Iran in late February, which throttled shipping through the Strait of Hormuz. Villa Vie said its monthly fuel expense per cabin in parts of Asia had risen to $6,000 to $8,000, from $1,800. “We cannot simply pass increases of that scale on to residents,” the company said.
The cruise’s budget was based on the expectation that the ship would be fully booked, said Villa Vie’s founder, Mikael Petterson, who was also involved in the canceled Miray venture. He said that, after a successful 2025, sales dropped after the war with Iran started.
The company sold nearly 100 cabins to around 125 passengers ahead of its planned May 2024 departure, but the inaugural cruise was delayed for months while the ship, which is 32 years old, underwent extensive repairs to clear inspection in Belfast, Northern Ireland. The setback cost millions of dollars, eroded trust and put off potential customers.
Some passengers criticized the business model, arguing that monthly fees set in 2023 were too low and should have been adjusted for inflation. Mr. Petterson agreed that they were insufficient to cover rising fuel costs and noted that occupancy rates were too low to make up the shortfall. The company tried to introduce a $1,500 monthly fuel surcharge, but 70 percent of residents refused to pay, Mr. Petterson said. Many had already contributed thousands of dollars in cash to keep the ship afloat this year.
Dana Teton, a 71-year-old retired medical equipment salesman living in Honolulu, booked a five-week cabin rental starting in June for himself and his girlfriend for $12,000.
During their itinerary, the ship was supposed to dock at 14 ports, including in Japan, Taiwan and South Korea, but it did not go to any of them because sailing to them would have used too much fuel. At first the couple was frustrated, but they said other passengers had become accustomed to the short-notice itinerary changes and they learned to adapt and go with the flow.
They ended up visiting the Anambas Islands in Indonesia and Tioman Island in the South China Sea, Mr. Teton said. “We had the best time and learned to go wherever the Odyssey would take us,” he added. “ We liked it so much that we signed up for another one.”
They are now among the passengers stranded in Cambodia. Most residents have arranged their own accommodation in nearby hotels, but Villa Vie said on Wednesday that it would help with onward travel and that it was working to charter a flight back to the United States early next week, costing guests around $1,100 per person.
Joel Grieff purchased an “Endless Horizons” lifetime prepaid contract for the Odyssey, which cost $350,000 and promised him permanent residency for the life of the ship with no monthly fees. He boarded the ship on Oct. 1 and spent only 26 days aboard before operations were suspended. “Basically, I paid $13,461.53 dollars per day for my 26 days,” he said.
Villa Vie said it would be focused on restructuring and recapitalization over the next 60 days. A skeleton crew of six members will stay aboard to maintain the ship.
“That work is ongoing, and no outcome is assured,” the company said.
Mr. Petterson said that, unless a new investor came through, the ship would eventually be sold, with proceeds divided among creditors and cabin owners based on outstanding liabilities.
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