Residential Cruise Ship Seized and Departs for Singapore
Just days after the residential cruise ship Villa Vie's Odyssey ordered passengers to disembark in Cambodia, reports indicate that the ship has been seized by creditors. The cruise ship left Cambodia around midnight on Wednesday, November 4, and its AIS transmission shows it is bound for Singapore.
The former residents remain in Cambodia for the most part as they continue to figure out their next steps. Reports said that a passenger committee had launched the idea of the residents buying the ship, but they admitted in a media interview that it was a long shot.
Unconfirmed reports said that two financial institutions had financed the operation and were the primary creditors. They are reported to have moved to seize the ship and directed it into layup at Singapore. There is speculation that they would move to have the ship sold at auction.
Some of the former passengers complained that they still have possessions aboard the ship. They were initially given just hours to collect everything and leave the vessel by 2:00 p.m. local time on October 27 after some were aboard for just over two years. Others had joined the ship at different intervals during the world cruise. Everyone was transferred to a hotel in Cambodia, where they reported the government was being very helpful with arrangements and hosted a welcome dinner. Reports had said the passengers were to be able to go back aboard the day after they were evicted to claim more personal items, and now some are renting residences in Cambodia.
The failure of what was promised to be an endless 3.5-year cruise has drawn worldwide media attention. Reports have come out of poor management, a shoestring operation, and growing fears among the passengers and crew that the operation would cease. There are reports of unpaid bills, crewmembers not receiving wages, and requests to the passengers to help with money and other situations. Passengers claimed they were repeatedly asked to make additional financial contributions to the operation.
The executives from Villa Vie Residences spoke to the media and said the seizure of the ship was not necessarily the end of the operation. They said they continued to work to refinance and still hoped that they could resume operations. They, however, repeated that there were no assurances that they could refinance the operation.
The company had cited dramatic increases in fuel costs as the reason for its collapse. It said efforts were made to lower fuel costs by sailing slower or extending the stays in port. However, the ship, which was capable of carrying nearly 1,000 passengers, was reported to be sailing with just over 200 residents. The company, however, had said in July that “Villa Vie Odyssey surpasses 85 percent of its available residences sold.” The Villa Vie website says it was selling 650 residencies.
Built in Spain, the cruise ship is a small vessel of just 24,344 gross tons. It entered service in 1993 and went through a series of names and operators during its career. It was acquired by the UK-based Fred. Olsen Cruises in 2001 sailing as Braemar. In 2008, the vessel was stretched in an operation for Fred. Olsen, which added a new 31-meter (102-foot) mid-body to the hull. She continued to sail until the cruise industry shutdown in March 2020 during the COVID-19 pandemic. Fred. Olsen replaced all its ships during the pandemic, and Villa Vie acquired the former Braemar and took delivery in February 2024. The ship was reconditioned and finally departed on October 3, 2024, after several delays, for its endless world cruise.
Mike Petterson, the company's founder and executive chairman, did not deny the reports of financial difficulties or that they had asked the residents to contribute additional money. Speaking to CBS News, he said the company was owned by management and the residents, and as shareholders, it was natural to ask them to contribute.
CBS also highlights that Residential Cruise Holdings, the parent company of Villa Vie, had said it was acquiring at least one additional cruise ship and working on two residential cruise projects. At the end of July, the company said it had a second cruise ship to start operations in 2029 and was offering passengers a scheme to transfer between the two ships. It had promised to announce the details of the second cruise ship during a party to celebrate the second anniversary of the sailing of the Odyssey.
A sister company, Avora Residences, had also begun marketing and reported it had an agreement with Villa Vie. Avora reported that it had a nine-year charter with a nominal purchase option for the Seven Seas Navigator from Regent Seven Seas Cruises, part of Norwegian Cruise Line Holdings. It was scheduled to take over the ship in late 2027 and relaunch it as the Avora Lumina, a more upscale cruise residence.
Petterson told CBS News that he was focused on attempting to refinance the Odyssey. There was no word on whether the other operations would survive.
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