To hide VMs behind the host IP use a routed networking configuration.
Create another virtual network interface and enable routing on this interface.
vi /etc/network/interfaces
Modify the eth0 interface:
auto eth0 iface eth0 inet static post-up echo 1 > /proc/sys/net/ipv4/conf/eth0/proxy_arp
NOTE: A routed configuration needs proxy arp to be enabled on the outgoing interface.
Create the virtual interface and enable routing by adding those lines:
auto vmbr1 iface vmbr1 inet static address 10.3.5.1 netmask 255.255.255.0 bridge_ports none bridge_stp off bridge_fd 0 post-up echo 1 > /proc/sys/net/ipv4/ip_forward
NOTE: The last line will enable routing on the interface.
To avoid working with static routes, NAT the traffic:
post-up iptables -t nat -A POSTROUTING -s '10.3.5.0/24' -o eth0 -j MASQUERADE post-down iptables -t nat -D POSTROUTING -s '10.3.5.0/24' -o eth0 -j MASQUERADE
NOTE: This will enable the NAT function for the internal network 10.3.5.0/24 by using eth0 as the egress network.