A cloud manager monitors available resources on host computer systems, including a number of hardware threads supported by CPUs on the host computer systems and whether or not the CPUs have split core enabled. The cloud manager receives a request to provision a virtual machine (VM) that includes a hardware multithreading parameter that specifies whether hardware multithreading is allowed on the host computer system. The cloud manager then selects a host computer system for the VM taking into consideration the hardware multithreading parameter, the hardware threads supported by the CPU, and the split core settings. The VM is then placed on the selected host computer system using the hardware multithreading parameter. The result is more efficient utilization of CPU resources in a host for a virtual machine.