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Fixed by restarting services on Controller like described here https://docs.hpcloud.com/helion/openstack/install-beta/prereqs/

os-refresh-config service mysql restart os-refresh-config service neutron-dhcp-agent restart service neutron-l3-agent restart service neutron-metadata-agent restart service neutron-openvswitch-agent restart service neutron-server restart

Noticed that cannot ping Controller IP from physical host after this. Fixed by restarting networking:

service networking restart

I can login into Horizon console and see demo instance in Overview tab.

However when switching to Instance tab, no instances are displayed and error pops up in upper right corner:

Error: Unable to retrieve instances.