More than 200 passengers who had paid to live permanently aboard a luxury cruise ship have been forced to leave their floating homes in Cambodia after soaring fuel prices linked to the Iran war made the vessel’s round-the-world voyage financially unsustainable.
The Florida-based company Villa Vie Residences announced Tuesday, October 27, that it was suspending operations of the Villa Vie Odyssey, which has been sailing around the world since September 2024. The vessel remained docked Wednesday in the Cambodian port of Sihanoukville, where residents were told to disembark as the operator sought emergency financing and restructuring options.
According to the Associated Press, the ship was carrying 203 passengers from 15 countries, predominantly Americans, along with 156 crew members. Many residents had purchased cabins as permanent homes, investing substantial portions of their savings in a lifestyle marketed as an alternative to conventional retirement.
Fuel costs surge as passengers lose their floating homes
Villa Vie Residences attributed the suspension to extraordinary increases in fuel expenses following the outbreak of the Iran war in late February and subsequent disruptions affecting global energy markets. The company said monthly fuel costs per cabin, previously averaging approximately $1,800, had increased to between $6,000 and $8,000 in parts of Asia.
In its official statement, the operator explained that it had attempted to contain expenses by reducing sailing speeds and extending port visits. However, those measures proved insufficient to offset mounting operating losses, while passing the additional costs directly to residents was considered impractical.
The evacuation was particularly disruptive because passengers received very little advance warning. According to Cambodia’s deputy provincial governor Long Dimanche, residents were given approximately seven hours to collect their belongings and leave the vessel. Some subsequently departed Cambodia by air, while others remained in Sihanoukville as temporary accommodation arrangements were being considered.
Among those affected was British resident Holly Hennessy, who had lived aboard the Odyssey with her cat, Captain, since the voyage began. Speaking to CNN, she described the experience as extraordinary despite the financial problems that ultimately interrupted it. She said residents had previously been asked to contribute additional payments toward fuel costs and that the ship had reduced air-conditioning to conserve energy.
Company seeks restructuring as residents face uncertain future
The Odyssey, a 640-foot residential vessel, departed Belfast in September 2024 following months of technical delays. Its ambitious itinerary included more than 400 destinations across seven continents, allowing passengers to combine international travel with permanent accommodation.
The company’s residential packages included five-year arrangements starting at $59,999 and permanent cabins beginning at $119,999. Additional monthly fees, ranging from approximately $3,299 to $9,500, covered meals, housekeeping, internet access and other services.
One American resident, California retiree Sharon Lane, previously told CNN that she had invested her life savings in a cabin and intended to remain aboard for as long as the ship operated. Her experience illustrated the considerable financial commitment made by passengers who had sold homes or reorganized their lives around permanent residence at sea.
According to the Associated Press, the ship had arrived in Cambodia on October 23 for a five-day visit before continuing to Vietnam. Its itinerary had been scheduled to run through November 2027, while the company had previously announced plans to introduce a second residential vessel in 2029.
Villa Vie Residences said it would pursue restructuring and recapitalization over the next 60 days while assisting displaced residents and employees. However, it acknowledged that no financing agreement had been finalized and that the outcome remained uncertain.
Cambodian officials said the vessel was expected to refuel and depart on October 31.
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