to have collapsed.

A spokesman for the resort's owners, Aetna Life Insurance, yesterday confirmed that negotiations, which have been going on for many months with James M.

Dwyer, had been broken off.

It is understood that constant delays in concluding the $30 million deal had finally made the Connecticut-based insurance giant decide to act.

The Aetna spokesman said: "We are no longer in on-going discussions with James M. Dwyer.'' And she added that the property was still for sale but was not being actively marketed.

The move is bad news for the resort, which, according to the Minister of Tourism recently, had suffered in September bookings because of the uncertainty over its future.

Mr. Dwyer, who already owns the Paget White Sands Hotel, could not be contacted yesterday for comment and Sonesta president Dennis Tucker could not be drawn on the situation.

As recently as July, Mr. Dwyer revealed details about his plans for the 400 -room resort.

He aimed to sell off hotel rooms to investors, who would get a return when they were filled and would be able to book themselves in as normal guests.

He reassured staff that there would be no job cuts and said there were no plans to knock down any of the Sonesta buildings.

The sale was due to be completed by the end of August, but the deadline had been pushed back several times since the beginning of the year.

Mr. Dwyer's company, James M. Dwyer Real Estate Investment and Development bought the White Sands hotel last May and he made no secret of his intention to acquire other Bermuda tourist accommodations.

In the past he has been linked with the Lantana resort and more recently said he was bidding to take over the former Belmont hotel, which closed in 1998.

It is not known at what stage that deal is, but previously he said the sale of the Warwick hotel and golf course would be completed by the end of this month.

He had planned to sell off rooms at Belmont, on a similar basis as plans for the Sonesta.

The 25 acre Sonesta site has been on the market for many years, it was first put up for sale in 1993.

Mr. Dwyer has property interests in the US, including hotels and other developments.