The idea of residential cruise ships began in the late 20th century with The World project, which materialized in 2002. In the following 23 years, despite several attempts to enter the sector, only one other residential ship, the Odyssey, has managed to begin operations. This scarcity of actual offerings is not due to a lack of attempts: at least ten projects announced in the 21st century have failed to materialize.
Article from CruisesNews magazine no. 75 – December 2025
The landscape appeared poised to change with Crescent Seas, a company led by Russell Galbut, which planned to enter this market niche by the end of 2026 using the Seven Seas Navigator, which it had chartered long-term from Norwegian Cruise Line Holdings, who would retain technical management of the vessel. Crescent Seas had announced the charter of a second ship, the Insignia, from Oceania Cruises, scheduled for the end of 2027, and Galbut had ambitions to add more pre-owned ships and a new build by 2033.
Another project, Ulyssia Residences (a superyacht initiative spearheaded by veterans of The World), also appeared to be close to signing a construction contract this year.
Challenges and Obstacles:
The possibility of living at sea sparks the interest and imagination of many people and attracts media attention, even when projects fail to materialize. Larry Pimentel, one of the most experienced executives in the cruise industry in general, and the luxury market in particular, after his time at Cunard, Azamara, and Four Seasons, indicated that the number of failed attempts far outweighs the successes. He commented that, although many concepts and designs for residential ships are appealing, very few are ever implemented. Among the main obstacles are the lack of maritime expertise among real estate companies (which have almost always been the primary developers), insufficient financing and reliance on pre-sales, as well as the logistical complexity of managing a ship.
According to Real Estate & Lifestyle magazine, the average price of a luxury home in the United States in September 2025 was around $1,200,000, representing a 4.8% year-over-year increase, while the price of a standard home only grew by 1.8%. These prices are supported by high-net-worth individuals (the same ones who can afford floating residences) who act quickly and use real estate as a safe haven against economic uncertainty. In the US, luxury home prices have outperformed the rest of the market, with cumulative increases of 11% since September 2023. Given this appreciation, it's logical that an investor would opt for an onshore residence rather than a floating one.
The inventory of luxury homes in the US grew by 7.7% compared to September 2024. Despite this, supply is limited. There are currently 50% fewer luxury properties for sale compared to a decade ago. Therefore, demand is high, and prices continue to rise. However, many unfinished attempts to establish a residence on the market continue without ever materializing.
Financial Considerations and Target Market:
For buyers, acquiring an apartment at sea means investing in a depreciating asset, unlike any land-based property, as cruise ships typically have a lifespan of around 30 years. Significant maintenance fees must also be considered, so the purchase is more of a lifestyle choice than an investment. For example, the isolation they offered during the pandemic led to a dramatic increase in the number of projects. These ventures typically target individuals with very high net worth; for instance, penthouses on the superyacht Ulyssia can reach $60 million. In contrast, Villa Vie offers more accessible options on a former cruise ship refurbished in 1993.
Early Projects and Unfulfilled Ambitions:
In the early 2000s, Four Seasons Hotels & Resorts collaborated with veteran cruise executive Kristian Stensby on the Ocean Residences project, a new-build development at Aker Finnyards that included condominium options. However, the project relied on external financing and the sale of $150 million worth of residences and fractional ownership shares, and was therefore never realized.
Since then, numerous residential ship concepts have been announced, including Orphalese, Utopia, Blue World Voyages, Magellan, Storylines, Ocean Residences' Njord, Somnio, Life at Sea, and Dark Island.
Origins of the concept: The World and ResidenSea.
The idea of residential cruise ships originated in the 1990s when Knut Kloster Jr. presented ResidenSea. Perhaps inspired by his father's unfinished Phoenix World City, Kloster Jr. announced several residential ships. In 1997, Kloster presented a residential ship project of 86,000 GRT, with 286 apartments, to be built at the German shipyard HDW. However, they were unable to raise $190 million in shares on the Oslo Stock Exchange to build a ship that would cost $575 million.
Finally, Kloster built The World at the Fosen Mek shipyard in Norway, after selling 89 of the ship's 110 apartments before even signing the construction contract. Ranging in size from 100 to 300 square meters and equipped with kitchens, dining areas, and other amenities, they sold for a total of $228 million, with prices ranging from $2 million to $6 million. The ship also offered 88 standard suites that could be sold by the owner. After its delivery in 2002, The World began offering round-the-world voyages with extended port calls, spending an average of 250 days in port each year. Owners paid an annual fee of between $60,000 and $300,000.
After facing financial difficulties following the September 11, 2001 attacks, which resulted in not all the apartments being sold; and the tense coexistence between residents and regular cruise passengers, the ship was acquired by the apartment owners in August 2003. They sold the remaining apartments and created a community that remains to this day, although some apartments have changed ownership.
The World Today
: Currently, The World remains the only fully residential ship, with 165 residences ranging from studios to three-bedroom, three-bathroom units, and an average occupancy of 150 to 200 people. A recent $30 million refurbishment carried out last summer at Navantia's shipyard in Cádiz improved the efficiency of the ship's technical systems and environmental facilities, updated its public areas, and renovated some residences. Jessica Hoppe, CEO of The World, highlights its unique ownership model: “What makes The World truly special is that it goes beyond a luxury travel experience: it's a home, a global community like no other. It's not just about visiting new places, but about forging meaningful connections and embracing a lifestyle that combines exploration with a genuine sense of belonging.”
Following this extensive refurbishment, The World has been renovated to extend its lifespan by another two decades, allowing its owners to recoup their investment. The vessel enables remote work and continues to adapt to the evolving preferences of its community. Many of the original owners remain on board, contributing experience and continuity, while the personalized service of a seasoned crew ensures high levels of satisfaction.
Storylines and the Narrative:
The Narrative is a residential ship project focused on wellness and health. It was originally slated for commissioning in 2021 and becoming operational in 2024. This vessel, over 250 meters long, will offer a comprehensive 1,000 m² wellness center with a gym, relaxation pool, infrared saunas, and hydrotherapy. It will also offer group fitness classes and private trainers, all designed to keep you in top shape.
The medical clinic will be staffed with doctors, nurses, pharmacists, physiotherapists, and psychologists. The ship's all-inclusive accommodation rate covers medical checkups, dental cleanings, eye and hearing tests, and more. It will also feature a pharmacy that can provide residents with personalized medications and supplements.
To help residents enjoy the ship's amenities, it will offer personal trainers who will design customized fitness, nutrition, and lifestyle plans tailored to each person's health goals.
In terms of food, Narrative will offer three diets, all known for their life-prolonging benefits: a vegan diet; the Pritikin diet; and the Mediterranean diet.
Other facilities include a marina aft, a distillery, an art studio, etc. It was marketed as the most environmentally friendly vessel on the market, as it will use LNG as fuel, along with the latest energy recovery technologies.
The Narrative will offer 547 fully furnished private apartments, ranging from one to four bedrooms. Sale prices ranged from $1 million to $8 million, with ownership lasting for the ship's "lifetime," which Storylines estimates will be around 60 years. There was also a more affordable option: apartments with 24-year leases starting at $647,000. Storylines originally expected the Narrative to begin sailing in 2023, but the latest reports point to 2027, assuming no further delays.
The Dark Island was slated for construction at the beginning of this decade in the Clyde shipyards in Scotland, with delivery planned for 2025. The ship was to be operated by the family-owned company Clydebuilt and would offer 236 residential suites with one, two, or three bedrooms, spread across eight decks, with prices ranging from £8 million to £110 million. Similar to The World, each residence would have its own kitchen, but the ship also featured three restaurants specializing in Scottish cuisine. The Dark Island also offered a spa, a beauty salon, a hydrotherapy pool, a fitness center, and more.
Ocean Residences and the Njord:
The Njord is a difficult project to categorize, as it falls somewhere between a private superyacht, a luxury cruise ship, and a first-class condominium. Described as “the world’s largest private residential yacht” and named after the Norse god of the sea, Ocean Residences Development first announced the project in 2020. At that time, its developers shared a design for the vessel, which would consist of 117 private residences ranging from 140 to 840 square meters, priced between $8.5 and $70 million. It was also stated that the vessel would be completed in 2026, although no contract has been signed to date.
All the residences on board the ship will be designed to closely resemble a traditional house, with 15 different layouts available. To further enhance the residential offerings, the developers enlisted a group of interior designers and architects to lend their unique touch to some of the onboard residences.
The Njord's unique focus is on scientific research and environmental responsibility. The vessel will be equipped with a wide array of oceanographic facilities, including a wet and dry oceanographic laboratory, a high-capacity cloud data center, multibeam echosounders, an air and water sampling system, and two mini-submarines, among other resources.
Its promoters marketed it as a “carbon-neutral superyacht.” The Njord was to have been built by Meyer Werft and would have been powered by LNG-fueled diesel engines, batteries, and onboard heat recovery systems.
Somnio
, a vessel similar to the Njord but smaller, was announced in the summer of 2021 by Erik Bredhe. If built, it will house 39 apartments available to “elite buyers.” The vessel “embodies the new era of yacht living, combining ownership with community, privacy with intimacy.”
The Somnio was also promoted as the “world’s largest superyacht”, which will offer 39 luxury apartments costing more than 9.5 million euros each.
The vessel was designed by Winch Design in association with Tillberg Design, and its aim is to combine “the best of a superyacht with all the services and amenities of the finest five-star hotels,” including a 10,000-bottle wine cellar, restaurants and bars, as well as a beach club for water sports. Its residents will have access to state-of-the-art medical and wellness services.
The ship will have six decks, its construction will cost around $600 million, and it will be built by the Norwegian shipyard Vard. The Somnio will be equipped with a hull designed for ice navigation, allowing it to offer expeditions to Antarctica.
Villa Vie Odyssey
The only successful project to date is Villa Vie Residences, a startup, which markets a ship called Odyssey, which sailed for many years as a cruise ship for Fred Olsen as Braemar, before being converted into a residential ship in September 2024.
The Odyssey is currently a year into its maiden voyage around the world. Its founder and CEO, Mikael Petterson, sought to create an affordable, vibrant community, with cabins starting at $129,999 for inside cabins and monthly fees starting at $1,999 per person (double occupancy). Superior suites reach up to $439,999, with higher monthly fees. A mid-range outside cabin is offered for $169,999.
Petterson, with financial experience at Prestige Cruise Holdings and Royal Caribbean, initially collaborated with Miray Cruises on Life at Sea before founding his own project in 2023. Villa Vie acquired the 24,344 GRT Braemar (built in 1993 as the Crown Odyssey in Valencia, Spain) from Fred. Olsen Cruise Lines. It was refitted to its new role as a residential ship at Harland & Wolff, Belfast. There, it experienced a significant delay, pushing the start of operations from May to October 2024. The Odyssey then embarked on a 3.5-year round-the-world voyage, visiting 425 destinations in 147 countries, with a maximum of 650 residents. There is considerable flexibility in enjoying the residences: renting for segments of the round-the-world cruise, purchasing lifetime access, or acquiring seasonal ownership programs, among other options.
Onboard facilities include lounges, bars, social events, conferences, a business center, private offices, Starlink satellite Wi-Fi, a gym, a spa, wellness classes, a library, and nightly entertainment. There is a main dining room, the Palms Cafe buffet, and two specialty restaurants at an additional cost: one French fusion and the other a US steakhouse. The maritime operation is managed by Anglo-Eastern, with Reliable Maritime Solutions as the technical superintendent.
Another project based on refurbishing an existing cruise ship was Blue World Voyages, announced in 2019. The concept was hybrid, with 40 residences on two separate decks, and the rest conventional cabins (200 double and 25 single). It was scheduled to enter service in 2021, offering seven-night cruises in the Mediterranean. Its main selling point was sports activities: it offered golf, diving, kayaking, and more, including a full deck dedicated to a spa and another to a gym and fitness center. Another failed project, Orphalese, also offered a hybrid concept.
Ulyssia Residences: A Superyacht Vision.
Ulyssia is a residential superyacht project led by Frank Binder, with a management team experienced in superyachts and luxury cruises. Frank Binder himself presented it at the Mallorca County Club in Santa Ponsa in October 2024. The project has a reserved space at the Meyer Werft shipyard, leveraging the experience this shipyard gained from previous residential ventures, such as Njord. The overall layout and basic design are the work of renowned Finnish engineer Espen Øino.
Ulyssia will be a residential ship measuring 320 meters in length, 34 meters in beam, 7.5 meters in draft, and 99,600 gross tons, with 133 residences ranging from one to six bedrooms, and prices starting at €10 million. Each residence offers enormous private terraces and customizable interiors from a selection of internationally renowned designers, including Lenny Kravitz himself. It will also feature 22 guest suites. In other words, it will be similar in size to the large cruise ships currently sailing. Its hull is planned to be made of steel, and the superstructure of aluminum. Residents, whose annual fees will range between 3% and 4% of the purchase price, will enjoy residences ranging in size from 113 square meters (the smallest) to 982 square meters (the largest).
The leisure areas include paddle tennis courts, a theater, an art studio, and even educational facilities for young people. Once again, remarkable health and wellness facilities, operated by Chenot of Switzerland, are offered as a key attraction. In addition, it will provide educational programs, multiple lounges, restaurants, indoor and outdoor swimming pools, sports facilities, a yacht club and diving center, a gourmet market, and a wine cellar. Philanthropic and environmental conservation activities are planned, and the project aims to create a diverse and values-driven community.
It will be powered by the most technologically advanced and sustainable energy system available. Construction was scheduled to begin in 2025, with delivery in 2029, but the contract was never signed.
If a final contract is signed, design work will begin, and delivery is expected in 2029.
Crescent Seas: Ambition and Subsequent Disappointment.
Crescent Seas, led by Russell Galbut, was considered by Larry Pimentel to be the most promising project thanks to his mixed experience in real estate and cruise lines. Galbut, former CEO of Crescent Heights and former president of NCLH, planned to transform the Seven Seas Navigator and the Insignia into residential ships, along with a new vessel slated for 2033.
Founded in 1989, Crescent Heights is America's leading urban real estate company. It specializes in the development and management of architecturally distinctive mixed-use buildings in major North American cities. With over three decades of experience, Crescent Heights fully manages its properties and has received numerous awards for excellence over the years. The company is known for identifying emerging real estate markets, anticipating market cycles, forecasting changes in lifestyles and design trends, and pioneering the creation and implementation of innovative products.
As more professionals and even retirees adopt a nomadic lifestyle, residential boats will inevitably become more popular
For example, Crescent Heights was the first developer to create a national residential brand in the United States (NEMA), and the first to offer luxury rental residences in serviced skyscrapers in Los Angeles (Ten Thousand). It offers everything from designer micro-apartments to spacious, iconic residences with extensive service packages.
As part of this innovation strategy, Crescent aimed to expand its offerings with residential ships. To that end, it designed its foray into floating residences. Its initial strategy was to charter and refurbish existing, older cruise ships (initially the Seven Seas Navigator and the Insignia), reducing the number of cabins to create larger, more luxurious apartments, priced from $750,000 to $10 million, plus annual fees that included a wide range of services.
The 28,800 GRT Seven Seas Navigator would be delivered in October 2026 and begin its new life as a residential ship in December of that year, after a refurbishment of more than $50 million that included reducing the ship's 248 suites to 210, with a sale price of between $750,000 and $8 million.
Crescent had announced ambitious plans, promising five ships in the next five years. Last April, it also announced the charter of the 30,000 GRT Insignia, scheduled for delivery in November 2027 after a refurbishment that was to include reducing the number of cabins from 333 to 290. These 290 cabins would later be sold as floating apartments for between $650,000 and $10 million.
Sales began in Miami in the spring, attracting significant interest from individuals worldwide in the six months since their launch. However, after speaking with prospective buyers, it became clear that demand was focused on larger, more customizable residences—something very difficult to achieve by refurbishing an existing cruise ship. For Crescent Seas, these months of sales helped validate the market and better understand the needs of buyers, who were looking for more space, flexibility, and a say in the design process.
Thus, eight months after announcing its plans, Crescent Seas cancelled the long-term charter contracts for the two NCLH ships and chose to focus on the new build, which it named Ocean.
The initial goal of several residential projects is to create a true community at sea for those who want to enjoy the quality of life on a superyacht, but without the burden of managing their own yacht
This new vessel will have 55,000 GRT with nearly 20,000 m² of onboard space distributed among 300 customizable apartments. Those who had made deposits for chartered ships will receive a full refund and priority access to the new project. Being a larger and more customizable vessel, this will allow for reduced maintenance costs for each tenant thanks to economies of scale, even at the cost of a higher initial investment.
Other featured projects
While wealthy cruisers seek authentic and immersive adventures, homebuyers are also looking for something that elevates their lifestyle.
New real estate trends will follow these travel trends. With technology enabling more people to work remotely, why not own a fully equipped, unique home afloat? Or why not rotate residences among several properties within the same hotel brand? For many, this will be the next evolution. With the rise of high-end luxury cruises, several hotel companies continue to capitalize on the cruise industry's popularity by expanding their offerings of cruise residences.
In the spring of 2025, Four Seasons announced it had secured financing to build the Four Seasons II at Fincantieri, with delivery scheduled for 2027. This second mega-yacht will feature a dozen residential units. Accor, which is developing the Orient Express project for super-luxury sailing yachts, may also follow this trend.
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