The flight instructor reported that during the night instructional flight, they had just completed a touch and go landing when he announced a simulated engine failure after takeoff to the student. Having only accomplished simulated engine failures after takeoff during the day, the student was slow to use the attitude directional indicator (ADI) to command the appropriate pitch attitude, and the airspeed began to decay. The flight instructor immediately took the flight controls and attempted to establish a proper pitch attitude and added power to climb. The airspeed did not build quickly enough so he applied full power to attempt to recover from the maneuver. He reported that the engine initially hesitated, and he pulled “almost full up elevator” to establish a level attitude as the engine began to develop full power. However, the airplane’s rate of descent was not arrested prior to runway contact resulting in a hard landing. The flight instructor reported that there were no mechanical malfunctions or failures with the airplane that would have precluded normal operation. The flight instructor reported that the accident could have been avoided if he had familiarized the student with the ADI’s visual reference for best rate of climb and a power off landing attitude prior to the night flight, as well as, how to use the ADI’s during night flights. Additionally, trees and terrain west of the airplane’s approach point might have disturbed the approach winds. The instructor planned to factor that in during future approaches.