A Cruise Ship Sold as a Home Just Asked Residents to Leave

Villa Vie Residences has placed its residential cruise ship Odyssey in what it calls a temporary layup, and residents who treated the vessel as home have been told to get off. According to Cruise Industry News, the ship is laid up in the Far East and residents disembarked in Cambodia. Chief executive Kathy Villalbe informed them by letter, saying the company could not get the fuel needed to keep operating. Crew remain aboard to maintain the ship and its essential systems.

The Odyssey was built in 1993 as Braemar for Fred. Olsen Cruise Lines and was refitted in Belfast before Villa Vie launched its residential concept with it in September 2024. The idea was to sell cabins on a ship that circles the world continuously, letting people live aboard rather than just vacation. A resident quoted by the publication blamed a mix of problems, including the business model, management mistakes, and a fuel cost and availability crisis.

Money had been a recurring issue. Sources aboard told the publication that residents were repeatedly asked for more funds, most recently about $360,000 for fuel. In April the company offered an emergency loan seeking $3 million at 12 to 24 percent interest, with interest-only monthly payments and a balloon payment after 12 months. It is unclear whether any money was raised.

Rescue options are being floated. Oneil Khosa, the former chief executive of Bahamas Paradise Cruise Line, reportedly visited the ship to assess a possible acquisition, and a resident-backed group formed under Sagar Capital LLC has proposed a multimillion-dollar fundraising effort that would include residents buying back cabins. Villa Vie has described the layup as temporary, but no restart date has been given, and the company has not detailed what happens to residents’ investments.

Sources: Cruise Industry News, Fortune (2024 background on the Odyssey)