Residential Cruising Poised for Growth

The residential segment of the cruise industry is poised for dramatic growth if a series of new projects come to fruition. Many people fantasize about selling everything and running away on an endless cruise around the world, but multiple businesses have failed to capitalize on the dream. Several more have announced new plans to launch more cruise ships into the segment.

The latest reports come from a company called Ulyssia Residences, which says it will build a 323-meter (1,060-foot) residential yacht cruise ship. The ship would be comprised of 122 residences and 22 guest suites, and include a broad range of amenities. Reports describe a marina, two helicopters aboard along with a submarine for residents' use, a dive center, fitness facilities, a spa, and multiple restaurants.

In 2025, the company was in discussions with the well-known cruise shipbuilder Meyer Werft. Now they are said to have instead signed a letter of intent with China Merchants’ cruise shipbuilding division for a contract that could be valued at as much as $1.5 billion. So far, no contract has been signed, but in 2025 the company promoting the offering at the Monaco Yacht Show said the Ulyssia would launch at the show in 2031.

Njord is one of several projects that appear not to have come to fruition (Meyer Werft)

Several companies reported similar plans in recent years, but none have proceeded. In 2021, Ocean Residences Development was said to have awarded a construction contract subject to financing to Meyer Werft for an 84,800 gross ton ship named Njord. It was to have 117 apartments and launch by the end of 2025. Nothing proceeded, and now Meyer Werft in Germany has booked building slots in its large hall until the end of 2030 and mothballed its smaller building hall.

For years there were a series of mostly little old ladies who lived on the luxury cruise ships. Mary B., who lived on the Sagafjord, Rosemary on the ships of Royal Viking, Beatrice Muller on the Queen Elizabeth 2, and Leona Wachtstetter (Mama Lee) and Dolly Smith (Miss Dolly) on Holland America, but they were one-offs on operating cruise ships. They often became quasi-members of the staff, with the crew watching out for them.

The World, which has been sailing for nearly 25 years, is the only purpose-built residential cruise ship (The World)

The World (43,188 gross tons) launched in 2002 as the first true residential cruise ship. With 165 residences, the company describes her as the “largest private residential yacht on Earth.” Others have tried, but the economics of building a cruise ship and maintenance are daunting. The financial challenges are even greater, as many have found out as they planned to convert older cruise ships to residences. The only one, so far, that succeeded is Villa Vie Residences, which converted a 1993-built cruise ship that last operated as the Braemar of Fred. Olsen before the pandemic. The ship, now the Villa Vie Odyssey, is coming up on two years into her first three-and-a-half-year cruise. They said the Odyssey is 85 percent sold at this point.

The same company, Villa Vie, is now reporting it has a second older cruise ship (so far its identity has not been confirmed), which will launch as the Legacy in early 2029. They are billing it as a second residence ship, reporting it will be more upscale, including cabins that are 50 percent larger.

The founder of Villa Vie, Mikael Petterson, is starting a second company, Avora Residences, which they said will be a more luxurious offering. They have a nine-year charter from Norwegian Cruise Line Holdings for Regency’s Seven Seas Navigator (28,800 gross tons) with purchase options. The ship is due to hand over in late 2027 and relaunch in January 2028 as the Avora Lumina.

Villa Vie converted an old cruise ship and began a residential 3.5-year world cruise in 2024 (Villa Vie)

It is the second attempt to make this cruise ship into a residential ship. A Florida-based luxury real estate firm announced in 2025 the start of Crescent Seas chartering the Oceania Insignia and Seven Seas Navigator. It launched sales but, after discussions with potential buyers, canceled the charters in November 2025. It said it had gained a “deepened understanding of what high-net-worth buyers want: more space, flexibility, and participation in the design of their homes.” The constraints of converting 25-year old cruise ships meant it was difficult to meet these expectations.

Crescent Seas in November 2025 reported it was pivoting to a newbuild called Ocean, which would be 55,000 gross tons and have 300 units. They said the ship was scheduled for Q4 delivery in 2031, but no construction contract has been confirmed.

The allure of living full-time at sea continues to attract interest. It remains to be seen if the firms can overcome the financial challenges to bring this new generation of ships into service.