Leroy Sane scored twice as last season’s quarter-finalists reached the knockout round for the sixth successive season.
“The managers are so good and the best teams in Europe are here,” the City manager said.
“Some big, big teams have gone out. Inter Milan are an exceptional team but they are in the Europa League.
“In one day you sleep a little bit and you will be in the Europa League, so that is why I am so, so glad to be in the last 16.”
City created most of the several clear-cut chances in an entertaining encounter, but only came to life after Hoffenheim took the lead through Andrej Kramaric’s 16th-minute penalty.
Sane was too quick for the goalkeeper and the backtracking defenders to react and put City ahead in the contest