Villa Vie Residences suspends operations in Cambodia over fuel costs

A residential cruise ship designed to offer a permanent life at sea has suspended operations in Cambodia after soaring fuel costs driven by the war in Iran made the voyage financially unsustainable, according to reports.

Fuel Costs Surge More Than 300 Percent

The Florida-based operator, Villa Vie Residences, stated that monthly fuel expenses per cabin jumped from a historical average of about $1,800 to an estimated $6,000 to $8,000 in parts of Asia. The company noted that the conflict with Iran, which began in February, and the subsequent closure of the Strait of Hormuz sent global energy prices soaring. According to Business Insider, that increase represents a surge of up to 344%.

Resident Holly Hennessy told CNN that the ship even cut back on cooling to save power. However, those measures failed to cover operating losses. Villa Vie Residences announced it was unable to continue absorbing the deficits and that passing the full price increase on to residents was not a realistic solution.

Villa Vie Odyssey Passengers Disembark in Cambodia

The Villa Vie Odyssey docked in Sihanoukville, Cambodia, on October 23 for a scheduled five-day visit, according to a statement from the Sihanoukville Autonomous Port cited by 1News. Instead of continuing to Vietnam, the vessel remained docked as operators ordered passengers to disembark.

Long Dimanche, deputy governor of Preah Sihanouk Province, told media that there were 203 passengers and 156 crew members on the ship. While some passengers departed on flights, others awaited temporary living arrangements arranged by the company in Sihanoukville. The ship was scheduled to refuel before leaving Cambodia on Saturday.

Residents who sold their homes and poured their life savings into permanent cabins—which ranged from $119,999 to $439,999, alongside monthly fees between $3,299 and $9,500—were given short notice to leave. Lanette Canen and John Bodi told Business Insider they received notice from the CEO at around 6 a.m. on October 27, 2026, requiring everyone to disembark by 2 p.m. that day.

Villa Vie Residences stated it will spend the next 60 days pursuing restructuring and recapitalization, though the company cautioned that no outcome is assured. The operator’s plans for a second residential cruise ship, announced earlier, were not addressed in the suspension announcement.

Financial Tensions Grow Among Odyssey Passengers

Marketed as an “intimate” ship that reaches “parts of the world other ships can’t access,” the Odyssey had a confirmed itinerary stretching into November 2027. Onboard, passengers had access to amenities including several bars and restaurants, a pool deck, and a pickleball court.

Tensions regarding the ship’s financial health had been building for months. Passenger Reckamp, 59, recalled a meeting in early September where a company official requested that cabin owners help raise $1 million to leave Ha Long Bay, Vietnam. “She said, ‘If we don’t get this money, we have about four days of the ship running,’” Reckamp recalled. “’Then the lights will go off and the AC will go off.’” During a subsequent meeting, another resident who had purchased a cabin in August stood up and shared her distress: “I sold my house,” Reckamp recalled the woman saying. “I sold my car. I bought my home on this ship.”

Despite these struggles, the company remained publicly optimistic earlier in the year. In July, executive Mikael Petterson stated, “When we launched Odyssey, we set out to prove that residential cruising wasn’t just possible — it was sustainable.” While 85% of the ship was sold, the company noted in 2024 that prospective residents could still “secure their dream home starting at just $119,000.” For those seeking shorter commitments, a five-year residency begins at $59,999, with cabin rentals starting at $3,499 per month.

For many, the suspension marks a painful end to a unique lifestyle. Sharon Lane, a California retiree who invested her life savings into a permanent cabin, told CNN in June that she planned to live on the ship as long as it was operational. Following the eviction, Hennessy reflected on the experience: “That doesn’t diminish the memories, the adventure, the very special moments of having been a true global citizen.”

It remains unclear how many passengers were on board at the exact moment of the disembarkation order, and the status of the 156 crew members remains uncertain as the company evaluates its limited options.