I have the same problem on Artful. Here's the journal when trying to
activate the hotspot (connection name is "Hotspot"):

Nov 29 18:57:14 vesho systemd[1]: Reloading OpenBSD Secure Shell server.
Nov 29 18:57:14 vesho sshd[1245]: Received SIGHUP; restarting.
Nov 29 18:57:14 vesho systemd[1]: Reloaded OpenBSD Secure Shell server.
Nov 29 18:57:14 vesho sshd[1245]: Server listening on 0.0.0.0 port 22.
Nov 29 18:57:14 vesho sshd[1245]: Server listening on :: port 22.
Nov 29 18:57:23 vesho wpa_supplicant[1439]: p2p-dev-wlp2s0: 
CTRL-EVENT-REGDOM-CHANGE init=BEACON_HINT type=UNKNOWN
Nov 29 18:57:24 vesho systemd[1]: Reloading OpenBSD Secure Shell server.
Nov 29 18:57:24 vesho sshd[1245]: Received SIGHUP; restarting.
Nov 29 18:57:24 vesho systemd[1]: Reloaded OpenBSD Secure Shell server.
Nov 29 18:57:24 vesho sshd[1245]: Server listening on 0.0.0.0 port 22.
Nov 29 18:57:24 vesho sshd[1245]: Server listening on :: port 22.
Nov 29 18:57:26 vesho NetworkManager[1040]: <info>  [1511974646.0567] keyfile: 
update /etc/NetworkManager/system-connections/Hotspot 
(6d467c9a-09c0-4c0e-a7e6-6ee4c7e1cdf2,"Hotspot")
Nov 29 18:57:26 vesho NetworkManager[1040]: <info>  [1511974646.0574] audit: 
op="connection-update" uuid="6d467c9a-09c0-4c0e-a7e6-6ee4c7e1cdf2" 
name="Hotspot" 
args="802-11-wireless-security.key-mgmt,802-11-wireless-security.psk-flags" 
pid=26521 uid=1000 result="success"
Nov 29 18:57:29 vesho NetworkManager[1040]: <info>  [1511974649.9915] device 
(wlp2s0): disconnecting for new activation request.
Nov 29 18:57:29 vesho NetworkManager[1040]: <info>  [1511974649.9916] device 
(wlp2s0): state change: activated -> deactivating (reason 'new-activation', 
internal state 'managed')
Nov 29 18:57:29 vesho NetworkManager[1040]: <info>  [1511974649.9942] audit: 
op="connection-activate" uuid="6d467c9a-09c0-4c0e-a7e6-6ee4c7e1cdf2" 
name="Hotspot" pid=3181 uid=1000 result="success"
Nov 29 18:57:29 vesho NetworkManager[1040]: <info>  [1511974649.9963] device 
(wlp2s0): state change: deactivating -> disconnected (reason 'new-activation', 
internal state 'managed')
Nov 29 18:57:29 vesho avahi-daemon[967]: Withdrawing address record for 
2001:470:1f09::XXXX on wlp2s0.
Nov 29 18:57:29 vesho avahi-daemon[967]: Leaving mDNS multicast group on 
interface wlp2s0.IPv6 with address 2001:470:1f09::XXXX.
Nov 29 18:57:30 vesho avahi-daemon[967]: Joining mDNS multicast group on 
interface wlp2s0.IPv6 with address 2001:470:1f09::XXXX.
Nov 29 18:57:30 vesho avahi-daemon[967]: Withdrawing address record for 
2001:470:1f09::XXXX on wlp2s0.
Nov 29 18:57:30 vesho avahi-daemon[967]: Leaving mDNS multicast group on 
interface wlp2s0.IPv6 with address 2001:470:1f09::XXXX.
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0110] dhcp4 
(wlp2s0): canceled DHCP transaction, DHCP client pid 27865
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0110] dhcp4 
(wlp2s0): state changed bound -> done
Nov 29 18:57:30 vesho avahi-daemon[967]: Joining mDNS multicast group on 
interface wlp2s0.IPv6 with address fe80::fb7e:9fad:d4f7:113a.
Nov 29 18:57:30 vesho kernel: wlp2s0: deauthenticating from b8:a3:86:b2:52:60 
by local choice (Reason: 3=DEAUTH_LEAVING)
Nov 29 18:57:30 vesho wpa_supplicant[1439]: wlp2s0: CTRL-EVENT-DISCONNECTED 
bssid=b8:a3:86:b2:52:60 reason=3 locally_generated=1
Nov 29 18:57:30 vesho systemd-networkd[792]: wlp2s0: Lost carrier
Nov 29 18:57:30 vesho systemd-timesyncd[781]: Network configuration changed, 
trying to establish connection.
Nov 29 18:57:30 vesho avahi-daemon[967]: Registering new address record for 
fe80::fb7e:9fad:d4f7:113a on wlp2s0.*.
Nov 29 18:57:30 vesho avahi-daemon[967]: Withdrawing address record for 
fe80::fb7e:9fad:d4f7:113a on wlp2s0.
Nov 29 18:57:30 vesho avahi-daemon[967]: Leaving mDNS multicast group on 
interface wlp2s0.IPv6 with address fe80::fb7e:9fad:d4f7:113a.
Nov 29 18:57:30 vesho avahi-daemon[967]: Interface wlp2s0.IPv6 no longer 
relevant for mDNS.
Nov 29 18:57:30 vesho avahi-daemon[967]: Withdrawing address record for 
172.18.1.122 on wlp2s0.
Nov 29 18:57:30 vesho avahi-daemon[967]: Leaving mDNS multicast group on 
interface wlp2s0.IPv4 with address 172.18.1.122.
Nov 29 18:57:30 vesho avahi-daemon[967]: Interface wlp2s0.IPv4 no longer 
relevant for mDNS.
Nov 29 18:57:30 vesho wpa_supplicant[1439]: p2p-dev-wlp2s0: 
CTRL-EVENT-REGDOM-CHANGE init=CORE type=WORLD
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0494] device 
(wlp2s0): Activation: starting connection 'Hotspot' 
(6d467c9a-09c0-4c0e-a7e6-6ee4c7e1cdf2)
Nov 29 18:57:30 vesho NetworkManager[1040]: <warn>  [1511974650.0515] 
sup-iface[0x55ee1ea4a020,wlp2s0]: connection disconnected (reason -3)
Nov 29 18:57:30 vesho systemd[1]: Starting 
systemd-resolved-update-resolvconf.service...
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0524] device 
(wlp2s0): supplicant interface state: completed -> disconnected
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0543] device 
(wlp2s0): state change: disconnected -> prepare (reason 'none', internal state 
'managed')
Nov 29 18:57:30 vesho nm-dispatcher[27505]: req:4 'down' [wlp2s0]: new request 
(2 scripts)
Nov 29 18:57:30 vesho nm-dispatcher[27505]: req:4 'down' [wlp2s0]: start 
running ordered scripts...
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0596] device 
(wlp2s0): state change: prepare -> config (reason 'none', internal state 
'managed')
Nov 29 18:57:30 vesho systemd[1]: Started 
systemd-resolved-update-resolvconf.service.
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0707] device 
(wlp2s0): Activation: (wifi) connection 'Hotspot' requires no security.  No 
secrets needed.
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0707] Config: 
added 'ssid' value 'veshoing'
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0708] Config: 
added 'mode' value '2'
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0708] Config: 
added 'frequency' value '5190'
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0708] Config: 
added 'freq_list' value '5190'
Nov 29 18:57:30 vesho NetworkManager[1040]: <info>  [1511974650.0708] Config: 
added 'key_mgmt' value 'NONE'
Nov 29 18:57:30 vesho systemd[1]: Starting 
systemd-resolved-update-resolvconf.service...
Nov 29 18:57:30 vesho kernel: IPv6: ADDRCONF(NETDEV_UP): wlp2s0: link is not 
ready
Nov 29 18:57:30 vesho wpa_supplicant[1439]: wlp2s0: Failed to start AP 
functionality
Nov 29 18:57:30 vesho kernel: IPv6: ADDRCONF(NETDEV_UP): wlp2s0: link is not 
ready
Nov 29 18:57:30 vesho kernel: IPv6: ADDRCONF(NETDEV_UP): wlp2s0: link is not 
ready
Nov 29 18:57:30 vesho systemd[1]: Started 
systemd-resolved-update-resolvconf.service.
Nov 29 18:57:30 vesho systemd-timesyncd[781]: Synchronized to time server 
91.189.89.198:123 (ntp.ubuntu.com).
Nov 29 18:57:30 vesho systemd-timesyncd[781]: Network configuration changed, 
trying to establish connection.
Nov 29 18:57:30 vesho kernel: IPv6: ADDRCONF(NETDEV_UP): wlp2s0: link is not 
ready
Nov 29 18:57:30 vesho wpa_supplicant[1439]: wlp2s0: Failed to start AP 
functionality
Nov 29 18:57:30 vesho systemd[1]: Starting 
systemd-resolved-update-resolvconf.service...
Nov 29 18:57:30 vesho systemd[1]: Started 
systemd-resolved-update-resolvconf.service.
Nov 29 18:57:30 vesho systemd-timesyncd[781]: Synchronized to time server 
91.189.89.198:123 (ntp.ubuntu.com).
Nov 29 18:57:54 vesho NetworkManager[1040]: <warn>  [1511974674.9480] device 
(wlp2s0): Activation: (wifi) Hotspot network creation took too long, failing 
activation
Nov 29 18:57:54 vesho NetworkManager[1040]: <info>  [1511974674.9481] device 
(wlp2s0): state change: config -> failed (reason 'supplicant-timeout', internal 
state 'managed')
Nov 29 18:57:54 vesho NetworkManager[1040]: <warn>  [1511974674.9492] device 
(wlp2s0): Activation: failed for connection 'Hotspot'
Nov 29 18:57:54 vesho NetworkManager[1040]: <info>  [1511974674.9504] device 
(wlp2s0): state change: failed -> disconnected (reason 'none', internal state 
'managed')
Nov 29 18:57:54 vesho kernel: IPv6: ADDRCONF(NETDEV_UP): wlp2s0: link is not 
ready

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https://bugs.launchpad.net/bugs/1579512

Title:
  Hotspot Access Point mode fails for 802.11a (5GHz) band

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