What happens to Villa Vie Odyssey ship after 'endless cruise' leaves 200 passengers stranded in Cambodia
A supposedly never-ending cruise hasn’t lived up to its reputation, as Villa Vie Residence's Villa Vie Odyssey has failed to stay afloat in an increasingly tough market. Departing from Belfast in October 2024, the Villa Vie Odyssey promised to let you live onboard for a "continuous voyage around the world." The 656ft vessel could carry up to 650 passengers, but shocking the media and passengers alike, it's said that its 200 passengers were ejected from the cruise ship in Cambodia.
The Villa Vie Odyssey (previously called the Braemar) was purchased from Fred. Olsen Cruise Lines in 2023, and following a refit in 2024, was supposed to leave the United Kingdom on a continuous three-and-a-half-year world tour that would travel to over 400 ports.
Some claim to have sold all of their worldly possessions to live out the rest of their days on the Villa Vie Odyssey, with interior cabins starting at $100,000 and boasting monthly fees of $1,750 per person for two people.
It was never really pitched as a never-ending cruise, with the price of admission covering you for the massive cruise ship's operational lifespan.
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Now, just two years into the trip, the Villa Vie Odyssey has dropped anchor for the foreseeable future.
What happened to Villa Vie Odyssey's 'endless cruise'?
The Villa Vie Odyssey's abrupt end comes amid soaring fuel costs that are said to have climbed from an average of $1,800 per cabin to anywhere between $6,000 and $8,000.
Villa Vie Residences claims it took "significant steps to reduce fuel consumption, including slowing the itinerary and spending more time in port," but unfortunately, these measures were unable to "offset the extraordinary increase in fuel costs."
The writing was already on the wall, with those itinerary cutbacks and maintenance delays reportedly leading to some residents permanently disembarking despite spending up to $439,999 for a cabin.
Speaking to Business Insider, Villa Vie Residences founder Mikael Petterson has opened up about what went wrong and explained that while he's the 'villain' of the story, he's "working day and night to find a way to get through this."
Suggesting things started going wrong early on, Petterson says preparing the ship cost $15 million more than the company had earmarked for a refit.
He was also involved in the collapse of Miray Cruises' three-year trip that fell apart in 2023 due to delays and operational mishaps. Looking at the bigger picture of 'endless' cruises, Petterson admitted: "Nobody that's tried residential cruising has succeeded, and we've gone further than anyone else. But I think we would have been absolutely fine — and we would have seen this through — if there was no Iran war."
He concluded that while larger operators are able to absorb some of the increased operating costs, Villa Vie Residences simply didn't have the size.
What happens to the Villa Vie Odyssey now?
The future of the Villa Vie Odyssey remains up in the air, with two potential paths: a 60-day financial rescue attempt or the even more somber corporate bankruptcy. At the time of writing, the vessel remains stationary at Sihanoukville Autonomous Port and is likely being operated by a skeleton crew that's focused on essential maintenance.
During this 60-day period, Villa Vie Residences is looking for new investors, emergency funding, or the ability to restructure its debts.
The ongoing global fuel crisis casts doubt on Villa Vie Residences getting the financial lifeline it needs, meaning port authorities or unpaid suppliers could legally seize the ship.
The Villa Vie Odyssey's age will also be a contributing factor, and having been built in 1993, it's actually pretty old by modern cruise industry standards.
Assuming Villa Vie Residences has to file for bankruptcy, the ship would be put up for auction. Unfortunately, its age and the aforementioned running costs suggest it would probably be sold for scrap rather than bought by another operator.
As for those residents who have (literally) been left high and dry, they legally don't own a physical slice of the ship. Having effectively bought a right to reside on the Villa Vie Odyssey, passengers will be classed as unsecured creditors in a bankruptcy court and be at the bottom of the priority list in terms of getting any compensation after banks, port authorities, and supplies have taken their share.
UNILADTech has reached out for Villa Vie Residences for comment.