after two years on the market.

The Sonesta Beach Resort has been for sale for nearly two years since its owners, US insurance company Aetna Inc., decided to offload the 400-room South Shore hotel.

Yesterday, Sonesta vice president/managing director Dennis Tucker said the hotel, if sold, would continue to operate as a resort.

But he added that shrinking profits had subsequently meant less money was being spent on the physical plant.

The news came a day after Mr. Tucker revealed it was likely that some staff would receive lay-off notices in the coming weeks as summer bookings looked disappointing.

"Aetna is looking for a buyer,'' said Mr. Tucker. "It is going to be a hotel and I am hopeful of being there for a long time, whatever happens. Sonesta has a commitment to being in Bermuda.

"There has been a little problem with investment in infrastructure. That is the result of diminishing profits. If we are not making the money, there will be less investment in infrastructure.'' But he pointed out that $30 million had been spent on the resort in the last five years.

"I think our infrastructure is very good,'' he said. "We don't compare with the top hotels around the world, but we have a very beautiful hotel and location.'' The Sonesta, along with the Southampton and Hamilton Princesses, announced that some staff lay-offs were on the cards if July and August bookings failed to clear the 70 percent occupancy mark.

Group and family bookings are lower than normal, and hoteliers are sceptical that the current advertising campaign is converting inquiries into reservations.

"We get a lot of last minute bookings, but I don't think we are going to get enough to make up for this decline,'' Mr. Tucker said previously.

Aetna first put the hotel on the market in 1993 and reaffirmed its intention to sell the 25-acre full service property again in August, 1997.