Paul and Lynn Montoya sold their home and cars in Wyoming to spend their retirement traveling the world. They paid $179,000 for a cabin aboard the Villa Vie Odyssey and about $6,000 a month in fees, making the cruise ship their home, not a vacation. Seventeen months after boarding in Panama, they are staying in a hotel in Cambodia, uncertain whether they will recover their investment. Paul told Reuters that the couple had watched the ship’s itinerary change and onboard services deteriorate. He said internet service disappeared when the ship reached Cambodia, while food quality had been declining for months.
Residents also faced requests for additional money to cover fuel costs, he said. The couple now plans to use funds previously set aside for monthly cruise fees to spend time in Malaysia. Other residents had also invested substantial savings in cabins, expecting the Odyssey to remain their primary residence for years. Their sudden displacement has left them facing additional accommodation and travel expenses, with no certainty about when they can return.
Why Villa Vie Odyssey Suspended Its Residential Cruise In Cambodia
Florida-based Villa Vie Residences suspended operations on October 27 at Sihanoukville, Cambodia, ordering residents off the ship. Cambodian officials counted 203 passengers and 156 crew members aboard the vessel, which can accommodate 650 passengers. The operator blamed higher fuel prices associated with the war involving Iran. It said monthly fuel costs per cabin had risen from an average of $1,800 to an estimated $6,000 to $8,000 in parts of Asia. The company tried slowing its itinerary and spending more time in ports, but it could no longer absorb the losses.
“We have been unable to continue carrying the resulting operating losses,” Villa Vie said in its October 27 statement.
Captain Emanuele Giudice said the fuel shortage required the crew to shut down equipment, including a generator. Passengers told the Associated Press they had only seven hours’ notice to leave. Giudice disputed that account, telling Reuters that residents received more than 24 hours’ notice. The company’s founder and executive chairman, Mikael Petterson, confirmed to CBS News that Villa Vie plans to file for Chapter 11 bankruptcy protection after running out of money while seeking fresh investment. He said monthly expenses had climbed from $400,000 to $2 million.
How Residential Cruises Work And What Happens To Displaced Residents
Residential cruises sell long-term access to cabins on ships that travel continuously between destinations. Unlike typical vacation bookings, passengers may buy multi-year or lifetime cabin rights or pay to rent accommodations. Villa Vie advertises five-year residency starting at $59,999 and permanent residency starting at $119,999, plus recurring fees. Those fees cover onboard services such as meals and housekeeping. The Odyssey began its continuous residential voyage in October 2024.
Villa Vie outlined plans to coordinate departures and help residents find temporary accommodations. However, several residents speaking to the Associated Press said they received no assistance and had to arrange their own hotel stays. Resident Randy Cassingham raised similar concerns with Cruise Industry News, revealing that the company had not offered to cover lodging expenses. The extent of assistance provided to all residents remains unclear.
The company initially said it would seek restructuring and financing over the next 60 days, without guaranteeing an outcome or announcing a restart date. Villa Vie’s published terms and conditions state that refund rights are governed by separate cabin purchase agreements. Villa Vie has not announced a comprehensive refund plan for affected cabin owners. Whether residents can recover their investments remains unresolved, particularly if the company files for bankruptcy protection.
