200 passengers stranded as cruise suspends operations in Cambodia, citing fuel costs of $8,000 per cabin

Extraordinary fuel costs have made its current operating model ‘extremely challenging’ says Villa Vie Residences. The company –  which offers never ending cruises –  has ended a cruise for 200 passengers and suspended operations in Cambodia as it works to address extraordinary increases in fuel costs and evaluate restructuring and recapitalisation alternatives.

This means the passengers have had to leave the ship, Odyssey, with their belongings, and find accommodation in Sihanoukville, Cambodia as they wait to see what unfolds.

Rising fuel costs put business model under pressure

Villa Vie Residences’ golden passport programme was launched in August 2025. That allowed individuals to live at sea on a lifetime basis for a one-time payment starting at $99,999. The idea was to offer a new model of global living at sea, combining the freedom of world travel with the comforts of home.

When the passport was launched, there had already been difficulties. Odyssey suffered around four months of delays, as passengers found other accommodation in Belfast for the summer of 2024. Seemingly there were a series of technical issues, including problems with its rudders and gearbox, which kept it in the repair yard of Harland and Wolff for 17 weeks (the vessel operated under the name Braemar until 2020). When it finally set sail, Odyssey had to return the next day due to missing paperwork.

Fuel bills rise from $1,800 to as much as $8,000 per cabin

Now, the company’s working with residents to coordinate disembarkation and identify temporary living arrangements.

A statement blames the sharp rise in fuel costs for the situation, saying that on an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 has recently reached an estimated $6,000 to $8,000 in parts of Asia.

Villa Vie Residences says it cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed its current operating model under unsustainable financial pressure.

‘Villa Vie Residences recognises that this is a difficult and disruptive period for residents, crew members, and employees, and is working to support those affected as plans develop,’ reads the statement.

“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,” says a spokesperson.

“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.

“Passing the full increase on to residents is not a realistic solution. Our focus now is on supporting residents, crew, and employees while we work toward restructuring and recapitalisation over the next 60 days. That work is ongoing, and no outcome is assured.”

Residents reportedly asked to contribute additional funds

On 1 August, chief executive Kathy Villalba seemingly sent residents a message about ‘cash-flow’ challenges. According to Business Insider the message said: ‘We have now reached a critical point. The lack of full participation, combined with the unprecedented increase in fuel costs, means we must make immediate and creative operational decisions to preserve the voyage.’

All residents were asked to contribute to funds, with the message saying that the need for financial help was ‘real, immediate, and necessary to keep Odyssey moving.

‘This is a moment when preserving our home and continuing the voyage requires support beyond contractual minimums from those who are able to provide it.’

Mikael Petterson, executive chairman of Villa Vie Residences, recently told the website he understands residents’ feelings.

“I get it. I feel awful. They’re counting on me to make the decisions here and there’s nothing else I’m focused on. I’m the villain in the story, but I’m doing everything I can to support the residents on a solution forward.”

Talks with a potential investor seemingly fell through last week leaving the company out of options. Villa Vie Residences continues to evaluate potential paths forward, but no financing or transaction has been finalised.

Residents told to pack bags and disembark

According to the Daily Mail, the passengers were given seven hours to pack their bags.

A retired couple told the paper that they’d chosen to spend four years onboard. They say calls for money to help cover rising fuel costs began in April as fuel prices increased due to the conflict in the Middle East. The paper reports that the company asked residents for a collective loan of over £1 million which would be paid back with interest. Residents have ‘donated’ more money to stay afloat, says the couple.

The original offer

‘Through long-term voyage experiences and residential ownership opportunities, Villa Vie empowers travellers to explore the world without compromise,’ says the company’s marketing materials. The offer was to live aboard the Villa Vie Odyssey as it sailed continuously around the globe: ‘400+ destinations, one extraordinary life’. The company had a variety of programmes which customers could buy into. Those included permanent residency for the life of the ship, five-year residency and something called home-suite-home. Details are on its website.