Villa Vie suspends Cambodia cruise operations as fuel costs rise by up to 344%

Villa Vie Residences on Tuesday (27 October) announced that it has suspended operations in Cambodia as the company works to address extraordinary increases in fuel costs and evaluate restructuring and recapitalisation alternatives.

Fuel costs have risen sharply in the regions where the company has been operating. 

“On an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 has recently reached an estimated $6,000 to $8,000 in parts of Asia. 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 in a statement. 

According to a Reuters report, hundreds of people permanently living aboard a touring cruise ship, Villa Vie Odyssey, were forced to disembark in Cambodia this week following Villa Vie Residences suspending its operations in Cambodia. 

The report said the vessel had been cruising the world for at least 755 days. Passengers were offered the opportunity to rent or buy long-term or even permanent residences on board. 

The company said it is working with residents to coordinate disembarkation and identify temporary living arrangements. Villa Vie Residences said it recognised that this is a difficult and disruptive period for residents, crew members, and employees, and is working to support those affected as plans develop.

“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,” the company stated.

“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 recapitalization over the next 60 days. That work is ongoing, and no outcome is assured.”

Villa Vie Residences said it continues to evaluate potential paths forward, but no financing or transaction has been finalised.

“The company will provide further updates as material developments occur,” it added. 

Photo credit: Villa Vie Residences
Published: 29 October, 2026