Passengers Told to Disembark as Villa Vie Residences Suspends Operations
After passing the two-year mark at the beginning of the month, Villa Vie Residences has now informed all the passengers on the “endless cruise” to disembark immediately from the cruise ship Odyssey while it is docked in Cambodia. The company in its official statement is blaming skyrocketing fuel costs while saying it is evaluating restructuring and recapitalization alternatives.
Villa Vie Residences began in 2024, promoting a residential model aboard an older cruise ship. The ship, which was built in Spain in 1993, had gone through multiple owners and names before sailing from 2001 to the COVID-19 pandemic operated by the UK-based Fred. Olsen Cruises as the Braemar. Fred. Olsen had enlarged the ship to its current size of 24,344 gross tons with accommodations for over 900 passengers, but did not return the ship to service after the pandemic, and it was acquired by Villa Vie after four years of layup.
The world cruise finally got underway in October 2024 after long delays during the refurbishment of the cruise ship in Belfast. Plans called for the voyage to run for 3.5 years with over 425 destinations. Odyssey was due to end the first cruise in November 2027, with a second tenative voyage running to August 2030. The company was also promoting options to transfer to a long-promised second ship.
The cruise had reached the South Pacific and Asia earlier this year, but there were reports of the operation facing financial pressures, working on a shoestring budget, and multiple attempts to raise financing, including appeals to the passengers. An unconfirmed report received by The Maritime Executive from a person identifying as one of the passengers said they were expecting the ship to be arrested in Singapore last month or to run out of fuel.
Residents awoke today to find a notice telling them they had to move ashore by no later than 2:00 p.m. local time, although they would be able to arrange to go back aboard the ship to claim additional personal belongings. Villa Vie said it was working to coordinate the disembarkation and identify temporary living arrangements.
"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. Passing the full increase on to residents is not a realistic solution," the company said in a public statement.
It writes that fuel costs had historically averaged approximately $1,800 per month. It said in Asia they were now facing an estimated $6,000 to $8,000 in fuel costs per cabin. It writes, “the resulting shortfall has placed its current operating model under unsustainable financial pressures.”
As late as last month the company was promoting the acquisition of a second cruise ship. It said details would be released on the second anniversary at the beginning of October, with the new ship due to launch in 2029.
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The plan calls for the Odyssey to go into a warm lay-up in Cambodia, with the company saying the crew would remain aboard to maintain the vessel and its essential systems. It says it will “work toward restructuring and recapitalization over the next 60 days.”
The concept of converting cruise ships into residences is very popular, but it has proven financially elusive. Last year, a Florida-based luxury residential developer announced plans to retrofit two older cruise ships only to back away from the plan months later, saying it was instead exploring a newbuild. Multiple promoters have announced plans for residential cruise ships, but so far only the purpose-built cruise ship The World has endured in the residential cruise sector.
