diff --git a/server/src/com/cloud/agent/manager/allocator/impl/FirstFitAllocator.java b/server/src/com/cloud/agent/manager/allocator/impl/FirstFitAllocator.java
index e6b4ad4ab9f..f84033cb52d 100755
--- a/server/src/com/cloud/agent/manager/allocator/impl/FirstFitAllocator.java
+++ b/server/src/com/cloud/agent/manager/allocator/impl/FirstFitAllocator.java
@@ -282,6 +282,7 @@ public class FirstFitAllocator implements HostAllocator {
     	String templateGuestOSCategory = getTemplateGuestOSCategory(template);
     	
     	List<HostVO> prioritizedHosts = new ArrayList<HostVO>();
+    	List<HostVO> noHvmHosts = new ArrayList<HostVO>();
     	
     	// If a template requires HVM and a host doesn't support HVM, remove it from consideration
     	List<HostVO> hostsToCheck = new ArrayList<HostVO>();
@@ -289,12 +290,19 @@ public class FirstFitAllocator implements HostAllocator {
     		for (HostVO host : hosts) {
     			if (hostSupportsHVM(host)) {
     				hostsToCheck.add(host);
+    			} else {
+    				noHvmHosts.add(host);
     			}
     		}
     	} else {
     		hostsToCheck.addAll(hosts);
     	}
     	
+    	if (s_logger.isDebugEnabled()) {
+    		if (noHvmHosts.size() > 0) {
+    			s_logger.debug("Not considering hosts: "  + noHvmHosts + "  to deploy template: " + template +" as they are not HVM enabled");
+    		}
+    	}    	
     	// If a host is tagged with the same guest OS category as the template, move it to a high priority list
     	// If a host is tagged with a different guest OS category than the template, move it to a low priority list
     	List<HostVO> highPriorityHosts = new ArrayList<HostVO>();