Townsend has been ruled out for 10 weeks with an ankle injury, and after the Tottenham Hotspur winger had helped England qualify for the tournament, Hodgson is disappointed not to have the 22-year-old available to him in the summer.
The 66-year-old is quoted by the Football Association's official website as saying: "I am very disappointed. I am disappointed for him in particular, he had a fantastic debut bursting onto the scene and he did really well.
"I have been a bit disappointed for him that he has not had as much playing time over recent months than I was hoping that he would get, but to see him ruled out like this with a serious ankle injury, that is a cruel blow."
Townsend has scored once in his first five games on the international stage.