Strikes from Nico O’Reilly, Marc Guehi and Jeremy Doku saw City win on the day.
"It’s disappointing because of how we started the second half," Hato said afterwards.
"I think the first half was a good game from both sides. We created some chances, they had some chances too but as soon as we conceded the first goal in the second half, we seemed to lose our shape and in the end they took the game away from us and it wasn’t good enough.
"It’s clear that the way we started the second half wasn’t good and to be fair to City, they had three or four chances in five minutes and we struggled to get hold of the ball higher up the pitch.
"The way we came out of the changing room wasn’t good enough and once they scored, it seemed like the level dropped. We have to be better than this."
