Residential cruise ship startups selling condos at sea for over $100,000 are struggling for the same reason

• Throughout 2023, residential cruise ship startups have delayed their launches.
• Companies like Storylines and Life at Sea Cruises don't have their respective ships yet.

Buzzy residential cruise ship startups like Storylines can't seem to stick to their timelines.

In recent years, several companies have capitalized on the growing demand for longer cruises by announcing plans to launch permanent or semi-permanent condos-at-sea. But these startups' debuts seem to be inevitably followed by delays in their plans.

As of now, the only residential ship in operation is The World. But even it has faced roadblocks: Launched in 2002, residents had to pool $71 million to buy the $280 million ship themselves in 2003. And about 10 to 12 of The World's 547 cabins are resold annually between $2 million and $15 million.

From there, the list of successes is small. While hardcore cruisers are anxious to start their lives at sea, companies like Storylines, Victoria Cruises Line, and Villa Vie Residences are struggling to stay true to their timelines. It's easy to find people who want to live on a cruise ship — but these startups are finding that actually launching a condo-at-sea concept is difficult.

Storylines is a prime example

Since launching in 2016, Storylines has promised buyers onboard amenities like hydroponic farms, an anti-aging clinic, and 20 dining and bar venues. The company has pledged to build its own ship, named the MV Narrative, after originally weighing the purchase of a used ship. Over half of the future ship's 530 condos — which range in price from $875,000 to $8 million — have been reserved, Storylines CEO Alister Punton said in July.

Building a residential vessel from the ground up is a herculean effort, which requires securing funding, designing the ship, finding the shipbuilder, and actually executing the build. It's "like building a city," said a consultant who worked with Storylines but asked to remain anonymous to speak freely without fear of professional repercussions.

To bring cofounders' vision to life, Storylines announced in 2021 that it had tapped Croatian shipyard Brodosplit to build the approximately $900 million vessel. However, industry experts questioned this decision: The Croatian shipyard seldom builds cruise vessels of this proportions. Storylines told Business Insider the shipbuilder had the "ideal expertise" for the job. A year later, Brodosplit filed for provisional bankruptcy amid Russian sanctions.

While Brodosplit's bankruptcy proceedings were canceled in March, Storylines' launch has now been pushed back twice, from 2024 to December 2026.

However, nine former employees, consultants, and investors told Insider that they doubt the ship will be built, citing concerns about the startup's unrealized goals, broken contracts, and funding, as well as cofounders' lack of expertise.

"Nobody gives out a loan for near a billion dollars to a guy who's never built a ship" or who "has never done a deal this size," the consultant said, calling Punton and Lee's lack of experience in the industry "the cherry that sits on top of this whole shit sundae."

As many potential customers interested in condo-at-sea concepts are retirees, startups like Storylines don't have infinite time to fulfill buyers' dreams. At least one Storylines buyer has died amid these delays. Another retiree Mike Kasperzak, has asked for a refund after putting down his deposit two years ago. He told Insider he found himself asking: "Is this going to happen in my lifetime?"

Read Insider's full story about Storylines»

Building a new ship is hard – but so is acquiring an old one

While issues with Storylines' shipyard have contributed to delays, purchasing used vessels creates its own set of financial and logistical difficulties. Bidding on, acquiring, and refurbishing a large ship takes significant time and resources. And some older vessels could struggle to meet increasingly strict sustainability regulations.

Multiple recent startups that bought or chartered older vessels are facing their own series of delays.

Victoria Cruises Line is chartering its Victoria Majestic, formerly Holland America Line's MS Veendam. In February, the company announced the 27-year-old ship would depart on its circumnavigation of the globe just three months later in May. Its launch has since been delayed to late July 2024.

In March, Miray Cruises' new Life at Sea Cruises subsidiary opened reservations for its three-year around-the-world sailing, initially set to embark on November 1 aboard the roughly 30-year-old MV Gemini.

But, just weeks before the ship was supposed to depart, Life at Sea announced it was going to delay its launch because it still did not have a ship for residents to live on. The company also announced it would ditch its three-year itinerary. Instead, Life at Sea now promises a never-ending cruise.

The company has said it will replace the Gemini for the MV Lara, which has still not materialized. Life at Sea has yet to close on the ship as of writing.

Fares currently start at over $115,500 per person for a minimum three-year commitment on the ship.

The newest startup hasn't acquired a vessel yet either

In 2023, a handful of former Storylines and Life at Sea employees started Villa Vie Residences, another floating condo concept with cabins starting at $100,000. The newcomer says it plans to set sail in May 2024.

But like its predecessors, Villa Vie doesn't have a vessel yet. In October, Mikael Petterson, its founder and CEO, said he expected to close on a ship by the end of 2023, adding that he had "built more than enough time" into the schedule to account for hiccups. "We don't need as much of a runway that Life at Sea did."