American businessman Clifford Schorer has moved a step closer to buying Sonesta Beach Hotel by applying to set up a Bermuda company.

Mr. Schorer, a Boston-based entrepreneur, has applied to incorporate Southampton Beach Resort Ltd., to buy and run the hotel.

Sonesta has been owned since 1992 by Aetna Life Insurance, which acquired the property when a previous owner fell into financial problems.

The insurance company had been trying unsuccessfully since 1992 to sell the 400-bedroom Southampton property.

Mr. Schorer's lawyer Wendell Hollis, of Hollis and Company, said setting up the new company was an essential first step before the sale can move on.

Mr. Hollis said the Sonesta group may continue to manage the hotel after the sale is complete.

"It is necessary to incorporate the company to complete the transaction," he told The Royal Gazette yesterday.

"It's a chicken and egg situation where we can't go any further until we have the company in place and Government has given my client permission to incorporate.

"This is basically the first step in the completion process to acquire the Sonesta Beach property, the structure and business. That is not to say the Sonesta group will not continue to manage the place."

Aetna did not return calls for comment yesterday, and Mr. Hollis said Mr. Schorer was travelling and could not be contacted.

Unconfirmed broadcast media reports in November suggested the hotel would be sold for around $40 million.