More than 200 passengers living aboard a residential cruise ship have been forced to leave the vessel in Cambodia after its US-based operator suspended operations, citing soaring fuel costs and mounting financial difficulties.
Villa Vie Residences announced on 27 October that it had suspended operations of its ship, Villa Vie Odyssey, while exploring restructuring and recapitalisation options. The decision came as the vessel was docked at Sihanoukville, Cambodia, ending its continuous around-the-world voyage.
According to Cambodian authorities, 203 passengers and 156 crew members were aboard the ship when it arrived from Thailand on 23 October. Passengers had been scheduled to continue to Vietnam, but were instead instructed to disembark.
Long Dimanche, deputy governor of Preah Sihanouk province, said passengers were given approximately seven hours to pack their belongings and leave the vessel. Some subsequently arranged flights out of Cambodia, while others remained in Sihanoukville seeking accommodation and making arrangements for their next destination.
The sudden suspension has particularly affected residents who had treated the ship as their permanent home. Villa Vie marketed residential cabins that passengers could purchase or rent, offering an alternative to conventional retirement and long-term living arrangements.
Some residents had sold their houses, cars and other possessions to finance their lives aboard the vessel. The ship’s ownership arrangements were marketed as long-term or permanent residency opportunities, with some buyers promised a minimum 15-year residency.
The financial difficulties reportedly began months before the suspension. An investigation by CBS News published on 30 October, citing internal documents and interviews with residents and people familiar with the company, revealed that Villa Vie had faced difficulties paying suppliers, fuel providers and crew members as early as August.
The investigation reported that residents had been asked to help raise emergency funds while the ship was docked in Singapore. One resident reportedly paid US$400,000 directly to a fuel supplier to enable the vessel to continue its voyage. Internal documents reviewed by CBS also indicated that the company had accumulated millions of dollars in outstanding debts.
Villa Vie attributed the suspension primarily to rising fuel expenses linked to the conflict involving Iran. The company said monthly fuel costs, which had historically averaged approximately US$1,800 per cabin, had increased to an estimated US$6,000–US$8,000 in parts of Asia.
The operator said it had attempted to reduce consumption by slowing the ship’s itinerary and spending longer periods in port, but the measures had not been sufficient to offset the increased costs.
Villa Vie said it was working to arrange temporary accommodation for affected residents while exploring restructuring and new investment over the next 60 days. However, it acknowledged that no financing or transaction had been finalised and that the outcome remained uncertain.
The company’s founder, Mikael Petterson, told CBS News that Villa Vie would likely seek Chapter 11 bankruptcy protection in the United States as it attempts to reorganise its finances.
The suspension has raised questions about the financial security of residential cruise arrangements, particularly for passengers who invested substantial portions of their savings in cabins they considered their homes.
For some residents, the abrupt end of the voyage has meant more than the cancellation of a planned journey, leaving them to find accommodation and make arrangements to return home after giving up their previous residences.
