You may’ve noticed that when you go to set custom host reserve properties in a host group these setting don’t automatically propagate down to the individual hosts with those groups (see pic). When you set properties for “Host Reserves” at Host Group level in SCVMM 2008 or SCVMM 2008 R2, you’re, in essence, setting template values for host reserves for newly added hosts only. A common misconception is that when you set these reserves on host groups with active hosts that these reserve values will propagate down automatically or that these hosts will inherit those settings. That isn’t the case. You can get these settings to pass down by leveraging Host Group in the form of a template. All newly added hosts that’re placed directly in a host group with custom reserve settings will inherit these settings; however, this’s the only way this occurs. If the host’re already added, then only way to get these settings to take effect on existing hosts’s to remove host and then re-add it directly to host group (with reassociation.) Simply moving a new host to a host group after adding it as a host willn’t suffice.