Villa Vie Halts MV Odyssey Voyage, Citing Fuel Costs and Planned Chapter 11 Filing

More than 200 passengers, mostly Americans, were left ashore after Villa Vie Residences suspended operations of the MV Odyssey, the luxury ship designed for a continuous around-the-world voyage. The Florida-based company said fuel expenses roughly quadrupled, and CEO Mikael Petterson said on Wednesday that the firm plans to file for Chapter 11 bankruptcy.

The company said the conflict with Iran that began in late February pushed the price of fuel from an average of $700 a ton to a range of $2,000 to $3,000 per ton. The ship burns between 700 and 800 tons of fuel each month. Petterson said monthly costs for the vessel rose from $400,000 to $2 million, and asked where the additional $1.6 million would come from. Fuel costs per cabin went from an average of $1,800 a month before the war to between $6,000 and $8,000, according to the company. Petterson said Villa Vie did not pass those increases to passengers.

The Odyssey began its voyage in October 2024. Passengers could buy a permanent cabin for several hundred thousand dollars and become residents, with a guarantee of at least 15 years aboard. Some buyers sold their homes to do so. To cut costs, the vessel slowed down and spent five or six days in each port, hoping the fighting in the Middle East would end. Petterson said the company borrowed money and stretched payrolls while it looked for a financial partner. "We're at a point where it's just at a breaking point where we need capitalization," he said.

Benjamin Schatz, a retiree, had planned to live aboard the ship permanently. "Honestly, right now, I'm in denial and in shock, and I'm heartbroken," he said. He was given a few hours on Wednesday to pack and leave. He said some residents have little money and no plan: "There are people now who are homeless and who have very little money and don't know what they're going to do."

CBS News first met Schatz in April 2025, when he had lived aboard for about a year. Petterson said the pressure from fuel costs had built over nine months.