Work being undertaken by the Carbis Bay hotel in Cornwall, which is due to host the G7 Summit in June, is under investigation by the council's planning enforcement team.
Cornwall Council said it had received a planning application from the 47-bedroom hotel as well as "a number of complaints in relation to work already being undertaken", which is being investigated.
In response to environmental concerns, the hotel has clarified that work started several years ago to clear a small, self-seeded scrubland area, which was "not ancient woodland" and had no badger sets, and that there were no plans to re-route the South West Coast Path.
The hotel put out a post on social media that said: "[We] would like to address the misunderstanding on social media, and reassure our guests and neighbours about the area that we are working on at the moment.
"Part of our long-standing plans for the estate included clearing a small self-seeded scrubland area to the side of the hotel, and work on this area started several years ago. We can confirm this was not ancient woodland and there are no badger sets on this piece of land.
"We are working closely with a local landscaping team to increase planting in this area replacing the scrubland with a plethora of trees and plants more suited to the coastal environment.
"The South West Coast Path is fully open and there are no plans for this to be re-routed. Our commitment to this important route through the estate includes the upgrading of the existing surface to improve access and safe passage to the beach.
"Carbis Bay Estate is committed to sustainability, and dedicated to protecting the environment."