Management agreements on the rise - also in Germany
Parallel to the change in demand, the contract models are changing. Traditional leases are becoming less important, while management agreements and hybrid models are gaining momentum. In Europe, the share of operators expanding through such models increased from 45% in 2023 to 63% in 2025. A further increase to over 70% is expected for 2026. In Germany, too, more and more landlords and owners are examining these partnership models.
"Overall, we are also aware of the developments in Germany. The growth of providers and the increasing demand for management agreements are closely related, as these models allow for expansion with reduced risk and lower capital investment. Owners participate in the operators' revenues and, ideally, can achieve higher returns than with a classic rental," explains Daniel Jessop, Head of Workthere Germany, referring to structural hurdles: "Due to the more volatile revenue streams, owners in this country are often even more reluctant - especially for assets in managed funds with strict regulations, implementation is complex. Nevertheless, we are seeing increasingly successful examples of management agreements on the German market as well."