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