I thought that this could mean both "he is hosting his friends" (His friends are staying with him) and "he is welcoming his friends", although the latter is marked wrong by Duolingo. (but that's not my concern.)
(Apart from that, "hosting" is a bit formal for the sentence. You could say that the college is hosting a symposium, or that Belgium will be hosting the competition, but usually we'd use the Americanism - "He has friends over" or he has friends staying with him.) <- that's a side issue. My main intent is to learn French, not to criticise the use of English by Duolingo. Frustrating as it is sometimes, we have to accept that some things are never going to translate neatly. That's part of the fun.
L'accueil is also used for the reception at a business or a museum for example.
I'm trying to get a sense of the usage of accueillir in French. I think I understand it, but it would be good if a native French speaker could explain its use. There isn't a direct equivalent in English. You don't "welcome" someone for several days and to "receive" guests is something out of Downton Abbey. Maybe accomodate can be used in some cases.
"Il accueille ses amis" - Is this equivalent to "Ses amis demeurent avec lui" or "(ce matin) Il a des amis chez lui" (and I know that it's bad French) maybe to show them his new apartment, or is it both?
