Apologies, I misread the above fix (it's been a long day!) :-/

HandleLidSwitchDocked=suspend

fixes the issue on 16.10 as well on my HP (not XP!) Spectre x360.

Fans came on for a minute or two after resume but have since stopped.

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https://bugs.launchpad.net/bugs/1574120

Title:
  Notebook doesn't suspend when lid is closed after update to 16.04

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