You have to do it yourself. But it's not that hard. The easiest way of hosting multiple sites is probably to just assign multiple IPs to a single VM and simply run multiple servers simultaneously, each listening only on a single IP.
As far as the backup is concerned, Hetzner has the option of handling it for you for 20% extra money.
As far as the backup is concerned, Hetzner has the option of handling it for you for 20% extra money.