2018-05-26 09:56:09,676+0100 ERROR otopi.ovirt_hosted_engine_setup.ansible_utils ansible_utils._process_output:98 fatal: [localhost]: FAILED! => {"ansible_facts": {"ovirt_hosts": [{"address": "node1.example.com", "affinity_labels": [], "auto_numa_status": "unknown", "certificate": {"organization": "testlab.lan", "subject": "O=testlab.lan,CN=node1.example.com"}, "cluster": {"href": "/ovirt-engine/api/clusters/dda509fe-60c0-11e8-ac4e-00163e2285d7", "id": "dda509fe-60c0-11e8-ac4e-00163e2285d7"}, "comment": "", "cpu": {"speed": 0.0, "topology": {}}, "device_passthrough": {"enabled": false}, "devices": [], "external_network_provider_configurations": [], "external_status": "ok", "hardware_information": {"supported_rng_sources": []}, "hooks": [], "href": "/ovirt-engine/api/hosts/b0976daa-e4b5-4881-a59b-49f9eb51f7c5", "id": "b0976daa-e4b5-4881-a59b-49f9eb51f7c5", "katello_errata": [], "kdump_status": "unknown", "ksm": {"enabled": false}, "max_scheduling_memory": 0, "memory": 0, "name": "node1.example.com", "network_attachments": [], "nics": [], "numa_nodes": [], "numa_supported": false, "os": {"custom_kernel_cmdline": ""}, "permissions": [], "port": 54321, "power_management": {"automatic_pm_enabled": true, "enabled": false, "kdump_detection": true, "pm_proxies": []}, "protocol": "stomp", "se_linux": {}, "spm": {"priority": 5, "status": "none"}, "ssh": {"fingerprint": "SHA256:xh1kvHMx+qp3q2L4lxf4fwra9lCAVxlfAGiVBVa7I7M", "port": 22}, "statistics": [], "status": "install_failed", "storage_connection_extensions": [], "summary": {"total": 0}, "tags": [], "transparent_huge_pages": {"enabled": false}, "type": "rhel", "unmanaged_networks": [], "update_available": false}]}, "attempts": 120, "changed": false}

The engine failed to deploy your host and indeed we see "status": "install_failed"

You can find them under /var/log/ovirt-engine/host-deploy on the engine VM or also on your host in a directory inside hosted-engine-setup logs dir if hosted-engine-setup correctly managed to fetch them from the engine VM.