I just tried it, it works pretty well. You can also ask it to relaunch the activity.
When the app is running, and you do an instant run from Android Studio, it will try doing the hot swap. The app crashes and immediately relaunches (and it's the same build). All the while Android Studio is monitoring the app task and waiting for the hot swap to take place. It keeps checking, times out after a few seconds (realizing it didn't update successfully), and then it deploys and launches the new APK, as a last resort.
My point is to be careful when testing if you're getting the double launches, because the first time it is launched, it's still the old APK.