Mexico Scraps Environmental Review for Puerto Morelos Resort

Puerto Morelos, Quintana Roo — A proposed 130-room tourism development on the Puerto Morelos coast has encountered a major setback after federal environmental authorities found evidence that vegetation had disappeared from the property before the project received approval.

The Ministry of Environment and Natural Resources, known as Semarnat, dismissed the environmental application for the project, identified in government records as FRC-II. Plans called for hotel accommodations, swimming pools, a beach bar, pergolas and a wooden deck on nearly 70,000 square meters of coastal land about 3.5 kilometers from central Puerto Morelos.

The application was submitted by Promociones Residencial Morelos, S.A. de C.V., a company now connected to Finest Holding B.V. through the 2023 purchase of beachfront property previously owned by Canadian travel company Transat.

Transat said it sold the Puerto Morelos land for US$38 million to Finest Resorts, part of The Excellence Collection. That hotel group is currently promoting its new Finest Riviera Cancun resort near Puerto Morelos, with reservations available for 2027.

The corporate connection and the FRC-II name suggest the rejected proposal may represent a separate phase or component of Finest Riviera Cancun. However, neither Semarnat nor the developer has publicly confirmed that relationship. The environmental ruling also does not appear to halt the entire resort project.

During its review, Semarnat examined satellite images of the property taken in 2005, 2014, 2019 and 2024. Officials identified areas where vegetation had disappeared, including land between the coastal dune and mangrove ecosystem where part of the development was proposed.

The ministry asked the company to provide federal authorization for the clearing or legal evidence showing that no environmental review had been required. According to the resolution, the company did not produce the requested permit or successfully challenge the satellite findings.

The available records do not establish exactly when the vegetation was removed or who carried out the work. Finest acquired the property in 2023, while Semarnat’s comparison covers nearly two decades. The ruling therefore identifies unexplained environmental damage but does not accuse the current owner of performing the clearing.

The location is particularly sensitive because coastal dunes and mangroves help reduce erosion and storm damage while providing habitat for wildlife. The developer had proposed preserving more than 85 percent of the property, including sections of mangrove, lagoon and dune.

Semarnat’s decision is not necessarily permanent. Promociones Residencial Morelos may submit documentation demonstrating that the earlier work complied with federal regulations or file a revised environmental application addressing the agency’s findings. Until then, the proposed 130-room FRC-II development does not have federal environmental clearance.