More than 200 passengers have been left stranded in Cambodia after the operator of a luxury residential cruise ship suspended its around-the-world voyage amid soaring fuel costs linked to geopolitical tensions and the closure of the Strait of Hormuz. The ship is now docked at the Cambodian port of Sihanoukville on the Gulf of Thailand.
Florida-based Villa Vie Residences has suspended the MV Odyssey’s global voyage, and the company plans to file for Chapter 11 bankruptcy protection as it struggles to secure funding.
The Odyssey began its global voyage in October 2024 from Belfast, Northern Ireland. It offered residents permanent cabins priced between $119,999 and $439,999, along with shorter residency packages. Passengers were offered a minimum 15-year residency guarantee when the voyage began, but the journey has been cut short. The ship carried about 203 passengers, most of them Americans.
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“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. 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 said.
Chief Executive Mikael Petterson said the company’s fuel costs had risen sharply since the U.S.-Iran war began in late February. Before the conflict, the company paid about $700 per ton of fuel, but the price has since climbed to between $2,000 and $3,000 per ton, according to Petterson. The ship consumes about 700 to 800 tons of fuel each month, the company said. As a result, its monthly operating expenses rose from approximately $400,000 to $2 million.
“For us, when our monthly expenses go up from $400,000 to $2 million, where are we going to get the $1.6 million?” Petterson asked.
“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.”
Villa Vie Residences said its monthly fuel expenses per cabin had increased from an average of $1,800 to between $6,000 and $8,000 in parts of Asia. The company attempted to reduce costs by slowing the ship’s itinerary and spending more time in port, but those measures failed to offset the additional expenses. Petterson said the company had borrowed money and delayed payroll while seeking financial support to keep the voyage going.
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Passengers expressed “a deep sense of heartbreak” over the decision and said they had been given only a few hours’ notice to leave the ship. A 56-year-old couple said they received notification at about 6 a.m. Tuesday and were asked to disembark by 2 p.m. the same day. Some passengers said they had sold their homes to join the voyage and were now left without a place to live.
“It was difficult to process the news while packing up our life and saying goodbye to the place we had come to love,” the couple said.
“You come to this ship to live … it’s just sad that it’s all over,” another passenger said.
Villa Vie Residences said it was coordinating disembarkation arrangements in Cambodia and exploring temporary accommodation for affected residents.