A cruise ship selling the promise of a permanent life at sea has come to an abrupt stop.
Villa Vie Residences, which operates the residential cruise ship Villa Vie Odyssey, announced on Tuesday that it had suspended operations in Cambodia amid steep increases in fuel costs.
The company said its monthly fuel expenses per cabin, which had previously averaged about $1,800, had risen as much as 344% in parts of Asia, to an estimated $6,000 to $8,000.
The US-Israeli war with Iran began in February, and Iran’s subsequent closure of the Strait of Hormuz — a vital chokepoint for global oil shipments — sent energy prices soaring around the world.
“Since the conflict began in late February, we have taken significant steps to reduce fuel consumption, including slowing the itinerary and spending more time in port,” Villa Vie Residences said.
“Those measures have not been enough to offset the extraordinary increase in fuel costs, and we have been unable to continue carrying the resulting operating losses.”
Villa Vie Residences sold permanent cabins on its 509-cabin ship, the Odyssey, ranging from $119,999 to $439,999. Its pitch to residents was a never-ending cruise around the world with stops at more than 400 ports of call and a global circumnavigation every three-and-a-half years.
The ship, which has a pool deck, spa, and a pickleball court, also offered five-year residencies, starting at $59,999.
The rising fuel costs put the company’s operating model under unsustainable financial pressure, Villa Vie Residences said. The company added that it was evaluating options, but that no financing or transaction had been finalized.
“Passing the full increase on to residents is not a realistic solution,” the company said. “Our focus now is on supporting residents, crew, and employees while we work toward restructuring and recapitalization over the next 60 days. That work is ongoing, and no outcome is assured.”
The press release said the company was working with residents to coordinate disembarkation in Cambodia and to identify temporary living arrangements for them.
The Odyssey first set sail from Belfast in September 2024 after four months of delays.
Villa Vie Residences did not say how many residents were affected and did not immediately respond to a request for comment from Business Insider.
Have you spent time on the Villa Vie Odyssey? If you have a story to share, get in touch with this reporter: jzitser@businessinsider.com.
