Broadly speaking there are two types of virtual machines. The ones that sit on the base metal (type 1 hypervisors) like VMWare ESXi, Hyper-V and Xen, and the others (type 2 hypervisors) that run as regular processes on a host OS, e.g. VirtualBox, VMWare server, qemu and KVM.
For the first type there is no host OS, since everything runs from the hypervisor. For the case of Xen, the "host" (dom-0) is a special guest that can interact directly with the hypervisor, so it can e.g. start and stop other guest VMs.
For the second type you need to have a full host OS, like Linux of Windows, to run the virtual machines. For this purpose you can install any server oriented Linux distribution. Ubuntu has a server distribution that can fit the bill (it even provides a cloud distribution, i.e. a distribution to create your own cloud infrastructure using KVM virtual machine and Eucalyptus cloud management software, but I have no experience with it.)