Auberge Hollandaise Turn-Around: Consultant Package Proposal

1. Purpose

Provide Terrence with a risk-capped, performance-aligned engagement that funds the work now and rewards success later. The model mirrors common boutique-hotel management contracts (3–4% of turnover) yet costs far less, while guaranteeing expertise beyond the first 90 days.

2. Deposit (Mobilisation Fee) Proposal

The mobilisation fee is essential to secure the project’s start and cover initial out-of-pocket costs, while also demonstrating Terrence’s commitment to the partnership.

Option	Amount	When Due	What It Covers
A – Conservative	R 7 500	Contract signing	Domain renewals, premium plugins, first photo shoot retainer
B – Optimal	R 10 000	Contract signing	All of Option A plus first-month ad credits and CRM seat licenses

Guidance: While R 10,000 provides a realistic buffer and is recommended given the project’s scope, R 7,500 can be agreed if cashflow sensitivity is high, with actual third-party costs billed separately.

3. Engagement Phases & Fees

Phase	Period	Fixed Fee	Variable Fee	Key Deliverables
Kick-off / Probation	Months 1–3	R 15,000 p.m.	0%	• Launch new website, booking engine & 4 landing pages • OTA relisting (Booking.com, Expedia, Agoda) • Analytics & revenue-tracking dashboards
Growth & Optimisation	Month 4 onward	R 10,000 p.m.	2% of gross online turnover (site + app)	• Continual SEO/AI-search optimisation • Monthly revenue-management sprints • Quarterly marketing campaigns
Performance Accelerator	Trigger: ≥ R 600,000 web turnover for 3 straight months	Unchanged retainer	+1% (total 3%)	• Maintain 60%+ direct-channel share – beats 15–25% OTA cost
High-Growth Accelerator	Trigger: ≥ R 900,000 web turnover for 3 straight months	Unchanged retainer	+2% (total 4%)	• Scales only when cash-flow allows
Equity Earn-In	After 24 months and two consecutive profitable quarters	—	5% equity in operating company	• Locks consultant in for long-term value creation

Why 2–4%?

• Hotel management companies typically charge 2–4% of total revenue, plus incentives.
• You replace a 15–30% OTA cost with performance marketing at a fraction of the rate.

4. Revenue Scenarios

Metric	Year 1 Target	Year 2 Target
Occupancy	60%	70%
ADR	R 3,200	R 3,500
Monthly Turnover	R 726,000	R 980,000
Direct-channel Share	35%	40%
Consultant Variable @2%	~R 5,100	—
Total Consultant Pay (retainer + variable)	≈ R 15,000 (matches probation)	≈ R 18,600
Owner Cost vs OTA 15%	Saves ±R 150k / year	Saves ±R 250k / year

(Assumes 10 rooms, boardroom & F&B ancillary; conservative by boutique-hotel benchmarks.)

5. Owner Benefits

Benefit	Description
Fixed-cost Drop	Retainer falls by one-third after month 3
Aligned Incentives	Consultant earns more only when revenue rises
Cheaper than OTAs	Even at 4%, cost stays < ¼ of typical OTA fees
Structured Accountability	Quarterly KPIs, accelerator thresholds, equity vesting
Market Standard	Mirrors global boutique-hotel management-fee norms (3.6% average)

6. Implementation Timeline

Week	Milestone
1	Contract signed; access to PMS & financials
2-4	Website/booking engine wire-up; revenue tracking tags
5-8	Landing pages live; OTA listings reactivated
9-12	First direct-booking campaign; dashboard review
13	90-day review → move to Growth Phase

7. Next Steps

1. Draft a two-page MoU covering fee definitions, reporting cadence, accelerator triggers, and equity clause.
2. Verify affordability with cash-flow projections.
3. Begin baseline data capture (occupancy, ADR, web referrals) before Phase 2.

Bottom Line

Terrence secures a committed specialist for a predictable R 10,000 retainer, gains a growth-linked partner whose upside is capped at 4%—far below OTA costs—and locks in expertise for at least 24 months. You secure long-term income and equity while proving tangible ROI within the first quarter.