Passengers on a residential cruise around the world have been left in Cambodia after the Villa Vie Odyssey suspended operations, with its operator blaming a sharp rise in fuel costs and warning that a financial rescue is not assured.

US-based Villa Vie Residences said monthly fuel costs per cabin in parts of Asia had risen from $1,800 to as much as $8,000 (£6,000). Global fuel prices have soared since the Iran war began earlier this year.

The company said slower sailing and longer stays in port had not reduced consumption enough to absorb the increase. “Passing the full increase on to residents is not a realistic solution,” it said. It plans 60 days of restructuring and recapitalisation, but cautioned that “no outcome is assured”.

Around 200 passengers were reportedly aboard when they were instructed to disembark in Sihanoukville on Tuesday; the exact number is unclear. The nearly 200-metre vessel can accommodate up to 650. The operator said it was working with passengers on disembarkation and temporary accommodation.

Passengers Lanette Canen and Johan Bodin said the chief executive informed them at 6am that they must leave by 2pm. They described Sihanoukville as a difficult place to disembark because of its distance from a major international airport.

The couple said residents knew about the financial difficulties. A prospective investor had visited to conduct due diligence, but no investment followed. “Although there were signs that this would happen, we still felt disbelief when it became real. We were heartbroken. It felt like our dream had been crushed.”

Holly Hennessey said passengers had previously been asked to consider a fuel surcharge and the itinerary had been severely curtailed. Some had left to travel overland. Residents were now staying in different hotels, she said.

The ship departed Belfast in October 2024 after repairs delayed its departure for months, costing the company millions of pounds. Its planned three-and-a-half-year itinerary covered nearly 150 countries; it had completed more than 750 days before the suspension.

Permanent cabin residencies cost $120,000 to $440,000, with rentals from $3,500 a month. The company launched a lifetime residence programme last year for people retiring at sea.

Canen and Bodin nevertheless considered their experience worthwhile, citing the travel and friendships. Some residents plan to settle together ashore. The couple intend to explore South East Asia after several days in Sihanoukville.

Hennessey is staying in Cambodia, hoping the ship sails again. “Until they say we are done - done done - I am not giving up.”