10
Loading video...
By Amanda Greenwood
Associate News Editor
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
An "endless" residential world cruise has been brought to a halt in Cambodia after its operator said soaring fuel costs had made its current business model unsustainable.
Villa Vie Residences announced on Tuesday, October 27, that it had suspended operations while it seeks to restructure and secure new financing, saying fuel expenses in parts of Asia had risen from a historical average of around $1,800 per cabin per month to an estimated $6,000 to $8,000.
The company's Villa Vie Odyssey has now entered a temporary lay-up, with residents told to disembark in Cambodia while crew remains aboard to maintain the vessel, according to a letter sent to residents by CEO Kathy Villalba, which read, “Unfortunately, we were unable to secure the fuel necessary to continue operations. As a result, the Odyssey will enter a temporary layup this afternoon, with crew remaining onboard to maintain the vessel and its essential systems.”
Read More on News
The development interrupts an unusual residential cruising concept designed to allow people to make the ship their home while continuously traveling around the world. The company's website describes the Odyssey as a 24,344-gross-ton ship, with eight decks capable of housing up to 650 residents and visiting more than 425 destinations across 147 countries and more than 100 islands.
Why Has the Cruise Stopped?
...
Villa Vie Residences blamed "extraordinary increases in fuel costs," saying the resulting shortfall had put its operating model under financial pressure it couldn’t sustain.
The company said that since conflict began in late February, it had tried to reduce consumption by slowing the Odyssey's itinerary and spending longer periods of time in port, but the measures weren't enough to offset higher fuel expenses. It stated: “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 recapitalization over the next 60 days.”
Cruise Industry News, however, reported that the lay-up followed the company's broader efforts to raise money. Citing sources on board the ship, the publication said residents had been approached several times for additional funding, including a recent request for another $360,000 to cover fuel costs.
The outlet also reported that in April the company offered residents an "Emergency Loan Investment Opportunity" seeking $3 million, with interest rates ranging from 12 to 24 percent.
The publication also reported that Villa Vie Residences had been seeking outside investors, with former Bahamas Paradise Cruise Line CEO Oneil Khosa recently visiting the vessel to assess a possible acquisition, according to sources on the ship. A resident-backed group had also explored a multimillion-dollar fundraising effort, the outlet reported.
What Happens to Residents?
Villa Vie Residences said it is working with residents to coordinate disembarkation and identify temporary places for them to stay.
The company said its focus over the next 60 days would be restructuring and recapitalization. However, no new financing or transaction has been finalized, and the company warned that "no outcome is assured."
The interruption comes just over two years after the Villa Vie Odyssey left Belfast on October 3, 2024, to begin what the company described as a “continuous world voyage.”
As recently as October 20, the company's published itinerary promoted a 3.5-year world voyage, with a confirmed schedule through November 2027 and a preliminary second circumnavigation stretching through August 2030. The itinerary specifically included an extended stay in Cambodia before planned visits to destinations including Thailand, India, Sri Lanka, the Maldives, Seychelles, Madagascar and Africa.
The voyage may not be over permanently, though. Villa Vie Residences describes the suspension as temporary and says it is evaluating ways to restart operations.
Newsweek has contacted Villa Vie Residences for comment.
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: John Fitzpatrick and Emma Lee-Sang
View 0 Comments
Submit Correction
View Editorial & AI Guidelines