When the host machine is suspended while the KVM through QEMU is running lead to issues like display unable to wake up when resuming suspend.

Suspending and resuming the Virtual Machine when the host machine is suspended using hooks in systemd and resumed fixes this issue.

/etc/systemd/system/root-suspend.service

[Unit]
Description=Local system suspend actions
Before=sleep.target

[Service]
Type=simple
ExecStart=-virsh suspend ubuntu20.04

[Install]
WantedBy=sleep.target

/etc/systemd/system/root-resume.service

[Unit]
Description=Local system resume actions
After=suspend.target

[Service]
Type=simple
ExecStart=-virsh resume ubuntu20.04

[Install]
WantedBy=suspend.target

sudo systemctl enable root-resume
sudo systemctl enable root-suspend

I also enabled,

ON_SHUTDOWN=suspend

in

/etc/conf.d/libvirt-guests

to shutdown the VM along with the host.