Generating $100/Month in Passive Income: Comparing Apple Hospitality REIT's 8.33% Yield to Host Hotels & Resorts and Traditional Equities

For retail investors seeking scalable, income-focused opportunities with minimal operational involvement, real estate investment trusts (REITs) have long been a compelling asset class. Among the most attractive options are Apple Hospitality REIT (APLE) and Host Hotels & Resorts (HST), two lodging REITs with distinct risk-return profiles. This article evaluates how these REITs stack up against traditional equity investments in generating $100/month in passive income, while balancing yield, growth potential, and financial stability.

The REIT Advantage: High Yields and Passive Income

REITs are legally required to distribute at least 90% of their taxable income to shareholders, resulting in typically higher yields than traditional equities. As of August 2025, Apple Hospitality REIT (APLE) offers a forward dividend yield of 8.33%, driven by its monthly $0.08-per-share payout. At a current share price of $11.68, investors need approximately $14,400 invested to generate $100/month in dividends.

In contrast, Host Hotels & Resorts (HST) pays a quarterly dividend of $0.20 per share (80 cents annually), translating to a yield of roughly 5.15% at its mid-$15.53 share price. To achieve $100/month in dividends, investors would need to allocate $18,460, reflecting a lower yield but potentially stronger operational metrics.

Financial Health and Growth Metrics

Apple Hospitality REIT has maintained a disciplined capital structure, with a net debt-to-capital ratio of 33.1% as of Q1 2025. Despite a 42.2% year-over-year decline in net income, the company has repurchased $32 million worth of shares and plans to acquire two hotels for $117 million. Its RevPAR (Revenue Per Available Room) grew marginally by 0.7% to $111.04, though occupancy fell to 71.1%, reflecting broader industry challenges.

Host Hotels & Resorts, on the other hand, boasts a larger balance sheet with $13 billion in assets and $2.3 billion in liquidity. Its debt-to-capital ratio of 43.4% is higher than APLE's, but its Total RevPAR grew 4.2% in Q2 2025, outpacing APLE's performance. HST's disciplined share repurchases ($105 million in Q2) and strategic asset sales (e.g., $60 million for The Westin Cincinnati) suggest a focus on long-term value creation.

Risk Considerations and Strategic Positioning

While APLE's high yield is attractive, its declining net income and occupancy trends highlight sensitivity to macroeconomic conditions. Conversely, HST's stronger RevPAR growth and diversified portfolio (220 hotels across 37 states) provide a buffer against volatility. Both REITs, however, face headwinds from rising labor costs and interest rates, which could pressure margins.

Traditional equities, by comparison, offer lower yields (S&P 500's 0.8% average) but higher growth potential in bull markets. For income-focused investors, REITs like APLE and HST offer a superior risk-return profile, combining real estate exposure with predictable cash flows.

Investment Recommendations

To generate $100/month in passive income:
- Apple Hospitality REIT (APLE): Invest ~$14,400 for an 8.33% yield. Ideal for investors prioritizing high current income and willing to accept near-term volatility.
- Host Hotels & Resorts (HST): Invest ~$18,460 for a 5.15% yield. Suitable for those valuing operational stability and long-term growth in RevPAR.
- Traditional Equities: Less efficient for income generation but better suited for growth-oriented portfolios.

Conclusion

REITs like APLE and HST provide a scalable, hands-off way to build a passive income stream. While APLE's high yield is tempting, its financial metrics suggest caution, particularly for risk-averse investors. HST's balanced approach—combining modest yields with robust operational performance—makes it a more conservative choice. For those seeking real estate exposure without the hassle of property management, both REITs outperform traditional equities in yield and income consistency.

Final Tip: Diversify your REIT portfolio to mitigate sector-specific risks, and reinvest dividends to accelerate compounding—a strategy that could turn $100/month into a lifelong income stream.