Falling fuel costs force luxury cruise residents to disembark in Cambodia

Residents of a luxury residential cruise ship were ordered to leave their cabins in Sihanoukville, Cambodia, this week after the operating company cited unmanageable fuel costs. The Odyssey, a 642-foot vessel that has operated for three years, has suspended its services, leaving passengers to arrange their own next steps while the ship prepares for a refueling stop.

Villa Vie Residences, the Florida-based operator, issued a press release on Tuesday stating it is identifying temporary housing for those still on board. The company explained that while it implemented measures to reduce fuel consumption, those efforts failed to offset the rising global energy prices. The ship, which departed Belfast, Northern Ireland, three years ago, was marketed as a platform for an unmatched style of luxury and exploration.

Long Dimanche, the vice governor of Preah Sihanouk province, told media outlets on Wednesday that 203 passengers and 156 crew members were aboard the vessel. Some residents have already departed on commercial flights, while others remain in the port city waiting for the ship to depart. Dimanche indicated that The Odyssey is scheduled to refuel before leaving Cambodia on Saturday.

Mikael Petterson, an executive at Villa Vie Residences, declined to provide further details in an email to NBC News. In a statement earlier this year announcing the company’s second residential cruise, Petterson noted that 85% of the cabins on The Odyssey were sold. The company’s Tuesday communication emphasized that it is currently supporting residents, crew, and employees while it moves toward a restructuring and recapitalization process expected to take 60 days.

Randy Cassingham, a resident who maintains the website ResidentialCruising.com, learned of the suspension via a note posted on the ship’s message board shortly after 7 a.m. on Monday. The notice informed residents that the ship would enter a temporary mooring status and that everyone must disembark by 2 p.m. Cassingham described the situation as a cascade of problems that he plans to detail in a future blog post.

Pamela Reckamp, 59, who leased a cabin with her husband and left the ship this month, said she was not surprised by the ending. She recalled attending a meeting in early September where a company official asked cabin owners to help raise $1 million to exit the bay in Vietnam. The official warned that without the funds, the ship had only four days of operational capacity left before lights and air conditioning would be turned off.

At a later meeting, a woman who purchased a cabin in August raised her hand to say she had not been informed of the financial difficulties. Reckamp recalled the woman stating she had sold her house and car to buy a home on the vessel. Reckamp, who described the crew as charming, said she felt relieved to have left before the final suspension. She noted that the residents and staff were caught in a difficult position.

A lawsuit filed last year by a company that purchased a cabin for $469,000 accused Villa Vie Residences of fraud. The plaintiffs alleged the operator misrepresented its financial stability and argued that the business model was precarious rather than financially solid. They are seeking a jury trial and damages exceeding $100,000. Villa Vie Residences denied the accusations in the suit, which remains pending.

When the company launched The Odyssey, it aimed to prove that residential cruising was both possible and sustainable. Petterson made this assertion in July. The company had previously advertised that potential residents could secure their dream home starting at $119,000. The ship’s cabins were available for sale or lease, catering to individuals seeking a permanent nomadic lifestyle at sea.

Villa Vie Residences did not immediately respond to a request for comment on Tuesday evening. The company’s current focus is on the restructuring process, with no guaranteed outcome promised. The ship remains in the port of Sihanoukville, awaiting its final fuel load before it departs the country.