US luxury cruise ship suspends world voyage, leaving 200 passengers stranded in Cambodia amid fuel crisis

# Fuel Costs Force Luxury Around-the-World Cruise to End, Leaving More Than 200 Passengers Stranded in Cambodia

More than 200 passengers have been left stranded in Cambodia after Villa Vie Residences suspended its luxury around-the-world cruise, citing a sharp rise in fuel expenses linked to geopolitical tensions and the closure of the Strait of Hormuz. The company's MV Odyssey is currently docked at Sihanoukville, a port on Cambodia's Gulf of Thailand coastline.

The Florida-based cruise operator has also announced plans to seek Chapter 11 bankruptcy protection as it struggles to secure the financing needed to continue operations. The decision has brought an abrupt halt to a voyage that was marketed as a long-term residential experience for people seeking to live aboard a ship while travelling around the world.

The Odyssey departed Belfast, Northern Ireland, in October 2024. Villa Vie Residences offered permanent residential cabins priced between $119,999 and $439,999, alongside shorter residency packages. At the beginning of the journey, residents were promised a minimum 15-year residency guarantee. The voyage, however, has now been suspended, affecting approximately 203 passengers, most of whom are Americans.

## Fuel Prices Push Operating Expenses Higher

Villa Vie Residences attributed the suspension primarily to the extraordinary increase in fuel prices following the outbreak of the U.S.-Iran conflict in late February.

The company said it had attempted to control expenses by reducing the vessel's speed and adjusting its itinerary to spend more time in ports. However, those changes were insufficient to compensate for the rising cost of fuel.

Chief Executive Mikael Petterson said the company had previously paid approximately $700 per ton of fuel. Prices subsequently climbed to between $2,000 and $3,000 per ton, according to Petterson.

The Odyssey consumes an estimated 700 to 800 tons of fuel each month. As a result, the company's monthly operating expenses increased from approximately $400,000 to $2 million.

Petterson questioned how the company could absorb the additional $1.6 million in monthly expenses, given the scale of the increase.

Villa Vie Residences said transferring the entire cost increase to passengers was not a practical option. The company added that its priority was to assist residents, crew members and employees while pursuing restructuring and recapitalization over the next 60 days. It cautioned that no outcome was guaranteed.

## Attempts to Reduce Costs Fall Short

The company also reported that monthly fuel expenses allocated per cabin had increased from an average of approximately $1,800 to between $6,000 and $8,000 in certain parts of Asia.

Slowing the ship and spending additional time in port were among the measures introduced to limit fuel consumption. However, the savings were not enough to offset the higher prices.

Petterson said the company had borrowed money and postponed payroll payments while seeking financial assistance to keep the voyage operating. Despite those efforts, the financial pressure became difficult to sustain.

The planned Chapter 11 filing would give the company an opportunity to pursue a restructuring process, although its future operations and the outcome for residents remain uncertain.

## Passengers Given Only Hours to Leave

The suspension has left passengers facing an unexpected disruption to their living arrangements. Several residents expressed deep disappointment over the decision, saying they had received only a few hours' notice to disembark.

A couple, both aged 56, said they received notification at approximately 6 a.m. on Tuesday and were instructed to leave the ship by 2 p.m. the same day.

For some passengers, the consequences extend beyond losing a planned holiday. Several reportedly sold their homes and committed their savings to the residential cruise, expecting to spend years travelling aboard the vessel.

One couple described the experience as difficult to process while packing their belongings and saying goodbye to a place they had come to regard as home.

Another passenger expressed sadness over the sudden end of the experience, saying residents had joined the ship intending to make it their home.

## Company Works on Passenger Arrangements

Villa Vie Residences said it was coordinating the disembarkation process in Cambodia and exploring temporary accommodation for affected residents.

The company has also said it is working toward restructuring and recapitalization, with the next 60 days expected to be important for determining its financial future.

The suspension highlights how rising energy costs and international geopolitical developments can affect businesses operating across global routes. For passengers who invested in a long-term residential cruise, however, the immediate concern is finding accommodation and making alternative living arrangements after an unexpectedly early end to their journey.

With the MV Odyssey remaining in Cambodia and the company preparing for bankruptcy proceedings, the future of the vessel and its residents remains uncertain.