Faced with mounting losses, St. George's Club developer Alistair Woolf is attempting to bail out of the timeshare resort by selling it to US-based Great Vacations Resorts.

Mr. Woolf and a group of investors bought the timeshare in 1994 for nearly $5 million after Canadian owner York Hannover went into receivership.

In a Club newsletter Mr. Woolf told timeshare owners that negotiations are underway to sell the resort to Great Vacations Resorts, a ''major timesharing developer'' in the US.

Mr. Woolf also told timeshare members the Club has a "cash flow crisis'' and he is assessing a special charge against them to meet the current total operating deficit. The Club is projected to lose over $820,000 in 1997. It lost $730,000 in 1996, and $460,000 in 1995. Accumulated deficits since 1991 add up to a projected $2.9 million in the 1997 budget.

To cover the losses Mr. Woolf's Real Estate Development Co. voluntary advanced about $1.1 million to the Club to meet cash flow "in recent years'', according to the newsletter.

The special assessement, which is on top of an increased annual maintenance charge, has angered timeshare members.

Timeshare owner Brackett Clark was upset enough to write a letter of complaint to Tourism Minister David Dodwell. He called on Mr. Dodwell to intercede on behalf of the 2,600 timeshare owners and stop the assessment.

"Mr. Alistair Woolf has threatened imminent extinction of the St. George's Club as it exists with his outrageous, unsubstantiated grab for cash from the captive Club membership as he plots his exit and "cash out'' from the scheme he undertook only a few short years ago,'' he stated in his letter.

Members' representative Richard Lawrence said they were "very unhappy'' about the extra charges and would be contesting it.

"Members have indicated they are not in agreement with the charges,'' he said.

He also said members wanted more information about Great Vacations Resorts, which Mr. Woolf stated had developments in Florida, South Carolina, Missouri, Pennsylvania, and California. In April Mr. Woolf told members at their annual meeting in Atlantic City he was considering making a public offering of stock to members.

"That offer seems to have been put on the back burner,'' Mr. Lawrence said.

Woolf in talks to sell St. George's Club In the newsletter Mr. Woolf stated he became aware of "numerous problems'' with the Club's operations, including the "heavy expense'' of running it, after taking over from the receiver in 1994.

Mr. Woolf attributed the losses to his limiting of increases in the annual maintenance charge over the past two years in the "interest of not antagonizing the members''.

Members will be charged an extra $1,000 per week of timesharing they have in a two-bedroom cottage and $700 per week in a one-bedroom cottage. Maintanence fees will also be increased to $1,400 a week of timesharing from $900 annually paid for a two-bedroom cottage. Annual fees for a one-bedroom will increase to $900 from $600.

According to one member who has five timesharing weeks in a two-bedroom cottage and two timesharing weeks in a one-bedroom cottage his "special'' assessment will add up to about $6,400 above what he has already paid as an annual maintenance fee. When he joined he paid an initial membership fee of $125,000 for his timeshare units.

"This special assessment does not address the $1.1 million due the Real Estate Development Company,'' Mr. Woolf stated.

He argues in the newsletter that even accounting for the increased maintenance fees and amortization of club membership purchase the St. George's Club offers savings of 60 percent over seven "luxury cottage colony accommodations'' in Bermuda.

He also argues that selling the Club to Great Vacations Resorts will lead to "economies of scale'' in administration expenses and help reduce costs.

"Assuming that this transaction takes place, the proposed public offering will be cancelled,'' he said.

Mr. Woolf did not return telephone calls about the proposed sale.

Last year Mr. Woolf successfuly petitioned the Government to allow release of a $2.4 million sinking fund held in trust to correct "latent defects'' in the resort left by the developer.

The developer was permitted to use the money for renovations at the club. Mr.

Woolf stated in the newsletter that so far 29 of the 61 cottages at the resort had been refurbished so far. The project would be completed by the end of 1997, he stated.

According to an "unaudited statement of results for the St. George's Club, the resort is projecting revenue of about $2.166 million for the year and expenses of about $3 million. The Club was assessed a $168,000 management fee.

Mr. Woolf stated that "there has been no profit to the developer in recent years''.