Villa Vie Residences has suspended its operations, blaming ‘extraordinary increases in fuel costs’.
The line, which operates the 650-passenger residential ship Villa Vie Odyssey, said it is evaluating restructure and recapitalisation options.
The ship had been on a continuous round-the-world voyage since leaving Belfast in October 2024, but yesterday passengers were told to disembark in Cambodia.
In a statement, the cruise line said it was working with residents to coordinate disembarkation and identify temporary living arrangements.
“Villa Vie Residences recognises that this is a difficult and disruptive period for residents, crew members, and employees, and is working to support those affected as plans develop,” it added.
It blamed rising fuel costs in the regions where it has been operating for its financial difficulties, saying its monthly fuel costs had gone up from an average of $1,800 per cabin to around $6,000 to $8,000 in parts of Asia since the outbreak of the Middle East conflict.
“The company cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed its current operating model under unsustainable financial pressure,” it said.
“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.
“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. Passing the full increase on to residents is not a realistic solution.
“Our focus now is on supporting residents, crew, and employees while we work toward restructuring and recapitalisation over the next 60 days. That work is ongoing, and no outcome is assured.
“Villa Vie Residences continues to evaluate potential paths forward, but no financing or transaction has been finalised.”
The company said it will provide further updates ‘as material developments occur’.
