Guardiola has overseen a transformation in City's campaign in recent months, with their superb Christmas programme putting the team right back in the title race.
For Hoddle, the Sky Blues look the real thing - though he can't nail how Guardiola has managed to turn it around.
Hoddle said on his podcast, 'The Glenn Hoddle Footy Show': "I don't know what he's done, but they have quality players. They had a little spell at the start of the season where both their centre-forwards were out and I wasn't sure who was going to play up there. They really played with a false nine... but suddenly they've kicked into gear."
Indeed, for Hoddle, the signs are ominous for the rest of the Premier League with City now beginning to win and play well consistently.
He continued, "The one thing that's been consistent this year has been the inconsistency. But you just get that feeling that Man City are the team which is beginning to become consistent. Liverpool haven't had it. Tottenham haven't had it.
"The consistency has not been there. You just get the feeling Pep has them playing in the way they know they can play. They have a little bit of swagger again.
"They're the class horse in the race and they're coming through the rest of the field.
"They're going to be the ones to beat in the league and the Cups."
This summer will mark five years with City for Guardiola - with the Catalan having signed a new deal to 2023 in November. And Hoddle believes the support Guardiola has received from City has been key to him choosing to extend his stay.
The former England manager believes the target of winning the Champions League with City is something which is driving him on.
"That's the aims and vision of the club," says Hoddle. "He didn't do it at Bayern Munich and he really hasn't done it outside of having (Lionel) Messi in his team if you think about it. But they're a side capable of winning the Champions League.
"They need to find that belief. It's not ability, they're as good as any team in the world at the moment. It's a mental thing."
Hoddle added: "The club is made for him and he is made for the club."
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