admitted yesterday.

The Warwick hotel, complete with its own private South Shore beach, had already attracted a "great response'', he said.

Mr. Alkon denied the move was because of falling revenues. "I'm just testing the waters to see if my property has the value that I think Bermudian property has,'' he said.

The "modest'' price tag was to "separate the wahoo from the chum''. "If I get my price, of course I would sell my property. I think 90 percent of the property owners in Bermuda given that choice would do the same,'' he said.

"If I can get $12 million I think it would be a fair price and I would take it.'' Mr. Alkon and his wife have owned 86 percent of the business for more than 15 years.

In June the 87-room hotel was 91 percent occupied, followed by 67 percent in July.

"August was lousy for everybody and we had a tremendous August,'' he said.

"We have come back this year - last year was our lowest year. We're not in financial difficulty or anything like that.'' The hotel has been offered in the New York Times at "$12 million net or best offer''. The advertisement gave the number of Mr. Alkon's Pennsylvania reservations office and did not identify the property.

Mr. Alkon said he was planning to advertise in London, and was considering wooing German buyers too.

Asked why he had not advertised in Bermuda, he said: "I already have agents here. Most of the big money right now is in London and Germany.'' Apart from its 700-foot beach, Mermaid has two restaurants, a pub, a beach bar and a gift shop.

It takes its place on the market beside several major Bermudian hotels. Among those officially for sale are the Bermudiana in Hamilton and Club Med in St.

George's.

The 233-room Bermudiana closed for renovation in 1988 and never re-opened. The last rescue plan for the empty 688-bed Club Med building was to use it as a plastic surgery centre.