A cruise ship selling the promise of a permanent life at sea has come to an abrupt halt.
Villa Vie Residences, which operates the residential cruise ship Villa Vie Odyssey, announced on Tuesday that it had suspended its operations in Cambodia due to the sharp increase in fuel costs.
The company said its monthly fuel spend per cabin, which previously averaged about $1,800, increased 344% in parts of Asia, to between $6,000 and $8,000.
The US-Israeli war with Iran began in February and Iran’s subsequent closure of the Strait of Hormuz – a vital chokepoint for global oil shipments – sent energy prices skyrocketing around the world.
“Since the conflict began in late February, we have taken significant steps to reduce fuel consumption, including slowing down the route and spending more time in port,” Villa Vie Residences said.
“These measures were not enough to offset the extraordinary increase in fuel costs, and we were unable to continue to sustain the resulting operating losses.”
Villa Vie Residences sold permanent cabins on its 509-cabin ship, the Odyssey, ranging from $119,999 to $439,999. His pitch to residents was an endless cruise around the world with stops at more than 400 ports of call and a trip around the world every three and a half years.
The ship, which has a pool deck, spa and pickleball court, also offered five-year residences, starting at $59,999.
Rising fuel costs are putting the company’s operating model under unsustainable financial pressure, Villa Vie Residences said. The company added that it was evaluating options, but no financing or transactions had been finalized.
“Passing the entire increase onto residents is not a realistic solution,” the company said. “Our focus now is on supporting residents, crew and employees as we work to restructure and recapitalize over the next 60 days. This work is ongoing and no results are assured.”
The press release states that the company is working with residents to coordinate disembarkation in Cambodia and identify temporary living conditions for them.
The Odyssey set sail for the first time from Belfast in September 2024 after a four-month delay.
Villa Vie Residences did not say how many residents were affected and did not immediately respond to a request for comment from Business Insider.
Have you spent any time at Villa Vie Odyssée? If you have a story to share, contact this reporter: jzitser@businessinsider.com.
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