You can go to Virtual inventory view and under VMs/Templates tab there is a search feature. Type the VM name and hit enter. It will show you the host the VM resides on.
Thank you both.
rahlschlager you are correct, this is what I'm looking for. I can search for VMs and add to machine group from the Virtual Inventory. I cant add them form the machine group, but this is alot easier than a manual method.