Residential Cruise Ship Odyssey Halts Voyage in Cambodia, 203 Residents Ordered Off as Operator Cites Fuel Costs

A cruise ship sold as a permanent home is tied up in Cambodia with no departure date, and more than 200 people who lived aboard are on shore finding their own beds.

The MV Odyssey, run by Florida-based Villa Vie Residences, left Belfast, Northern Ireland, more than two years ago on a voyage meant to last about 3½ years and touch all seven continents. On Tuesday, Oct. 27, the company said it was suspending operations in Sihanoukville, on the Gulf of Thailand. Cambodian officials put the number aboard at 203 passengers, mostly Americans, plus 156 crew. The ship holds 650 passengers.

The company's explanation: fuel

Villa Vie says fuel is what broke it. The company said monthly fuel expense per cabin, historically about $1,800, has reached an estimated $6,000 to $8,000 in parts of Asia. It ties the spike to the war in Iran, which began in late February, and to curtailed traffic through the Strait of Hormuz. Southeast Asia depends heavily on Middle Eastern energy.

"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," the company said in its statement. "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."

The company also said passing the full increase on to residents "is not a realistic solution." It said it will pursue "restructuring and recapitalization" over the next two months, but "no outcome is assured."

Captain Emanuele Giudice said on Thursday that the ship had to shut down one generator, a chiller and non-essential lights. "So we kindly asked the residents to get off the ship because our fuel situation was critical," he said. He added: "There are people now who are homeless and who have very little money and don't know what they're going to do." Asked whether the Middle East war and President Donald Trump were to blame, he declined to comment.

Seven hours or 24: a dispute over notice

The two sides disagree on how much warning residents got. Passengers told The Associated Press they were given seven hours on Tuesday to leave and had to arrange their own lodging. Holly Hennessy, who has lived aboard since the ship departed in September 2024, said it was less than a day. Giudice said residents had more than 24 hours.

The company's statement said it is working with residents to coordinate disembarkation and find temporary housing. Passengers said they received no support.

What residents paid

Prices varied by program. AP reported suites for the lifetime of the vessel started around $230,000. In May 2024, Fox Business reported the "Endless Horizons" lifetime option at $299,999 for a single cabin and $499,999 for double occupancy. Owners also paid monthly fees, which the Villa Vie website lists at $3,299 to $9,500 depending on the suite, covering food, drinks, Wi-Fi, medical visits and housekeeping.

Whether cabin owners keep any claim on the ship or on their money depends on the outcome of the restructuring. The company has not said.

Residents say the trouble predated the war

The fuel story is not the only account. Paul and Lynn Montoya, a retired Wyoming couple who boarded in Panama 17 months ago, told AP they were asked for money every two to four weeks. "We were tired of every two to four weeks being asked for money for fuel, money for everything," Lynn Montoya said. "We had hopes, but they just kept sinking further and further into the hole."

Paul Montoya praised the idea of residential cruising but said the owner lacked the expertise to make it pay. While fuel was the public reason for the shutdown, he said the company was already struggling. He cited itinerary changes, unreliable internet and declining food quality.

Hennessy said it had been "incredibly tough since the war." Residents were asked to pay a fuel surcharge back in May, she said, and the ship had been cutting cooling to save energy.

A letter the company sent residents said participation in the earlier fuel contribution "was not universal" and that the contributions "covered only part of the extraordinary increase in fuel costs." The letter said the company had since "exhausted its available reserves covering the remaining shortfall."

The founder's position

Mikael Petterson, founder and executive chairman of Villa Vie Residences, told Business Insider: "I feel awful. They're counting on me to make the decisions here, and there's nothing else I'm focused on. I'm the villain in the story, but I'm doing everything I can to support the residents."

He acknowledged the voyage's rough start. Mechanical problems delayed the ship's departure by months. But he put the final blow on the war. "Nobody that's tried residential cruising has succeeded, and we've gone further than anyone else," he said. "But I think we would have been absolutely fine, and we would have seen this through, if there was no Iran war."

Petterson said he had drawn up a plan last week to stabilize the finances and was in talks with a potential investor. LiveMint reported that the deal fell through and that he is now considering bankruptcy. Villa Vie has not announced a filing.

What comes next

The Odyssey remains at the Sihanoukville port. Villa Vie's two-month window to restructure and recapitalize is the next real marker. Until then, the residents who sank their savings into the ship have no word on whether it sails again, and the company has not said whether they will get any of that money back.