Serkoç Hotel Management, the owner of Lujo, has been allocated a 25,000-square-meter tract of forest land by the Ministry of Culture and Tourism, on which it is erecting 28 villas under the guise of a touristic facility.

In 2007, a fire broke out in the Meşelik District of Muğla Milas, engulfing an area filled with red pine trees. The blaze destroyed 250 hectares of forest along with nearly 30 hectares of agricultural land and olive groves.

According to a report by Yaşar Anter for Sözcü, the then Muğla Regional Forestry Director and former AKP Antalya MP İbrahim Aydın stated, "The forest areas and zoning sites are clear. I assert unequivocally that the burnt areas will neither fall under the 2B category nor be opened for construction. We will begin reforestation with seeding and sapling planting with the first rains in October." However, shortly after, parts of the burnt land were opened for profit, resulting in the opening of three luxury hotels, including Lujo Bodrum.

Lujo's owner, Serkoç Hotel Management, has commenced the construction of 28 touristic villas on the 25,000-square-meter adjacent Treasury land registered as forest area and allocated by the Ministry of Culture and Tourism. The luxury residences, boasting sea views and ranging from 580 to 680 square meters, will feature amenities such as jacuzzis and sunbeds on the balconies, heated private pools, and exclusive sunbathing areas.