Luxury Round-the-World Cruise Halts in Cambodia as Fuel Costs Soar

A luxury cruise meant to circle the globe has come to an abrupt end in Cambodia, leaving passengers stranded after its operator pointed to soaring fuel costs.

The Villa Vie Odyssey will disembark its passengers and crew and arrange temporary accommodation for them, according to an online release issued Tuesday. The ship's cabins cost up to $11,000 a month.

Its U.S.-based operator, Villa Vie Residences, says the vessel can carry as many as 650 passengers. It has been on a continuous journey around the world for two years, having set out from Belfast, Northern Ireland.

The ship drew international attention because it was marketed as a residential cruise, offering a permanent home at sea while calling at hundreds of destinations. Onboard amenities include a fitness center and spa, a business center, three restaurants, five bars and lounges, and complimentary alcoholic drinks.

Later this week the Odyssey had been due to reach Phu Quoc, a Vietnamese island. From there it was scheduled to continue to places including India, South Africa, Brazil and Australia, before docking in Gibraltar in August 2030.

In its statement, the company cited "extraordinary increases" in fuel costs. It said it would need to restructure and recapitalize its business over the next 60 days, and cautioned that "No outcome is assured."

According to the company, monthly fuel costs per cabin have climbed from $1,800 to as much as $8,000 in parts of Asia. CNBC's calculations put that at a 344% increase.

"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," the statement said.

Villa Vie Residences added that since the Iran war began on Feb. 28, it had taken significant steps to cut fuel use, including slowing the itinerary and spending more time in port. "Those measures have not been enough to offset the extraordinary increase in fuel costs," the company said.