Point 1: Hotel
He probably forgot that he'd offered you a room, a throwaway remark perhaps?
Even when offered a "favor" from a client, one should always politely refuse. If you’ve seen Band of Brothers, there as a small but telling scene in episode one where Winters was chewing out Lt. Buck Compton for gambling with the enlisted men.
“Never put yourself in a position where you can take from these men.”
He was quite right. I never put myself in a position where I can take or accept “favors” from my clients or from people who want me to be their client. If you “owe” anybody anything, they will most certainly call that favor in at some point in time.
I always approach “corporate hospitality” very carefully, there is no such thing as a free lunch my friend.

Use your gut feelings. If it feels dirty, tainted, dodgy, just politely decline. If it’s perfectly innocent like accepting a homemade meal with his wife and family, then by all means run with it.
I take ethics in business very seriously. I draw distinct lines in the sand of what is acceptable and what is not and people that deal with me know that. Sure enough I could make a lot more money cutting a few corners, but I have no intention of spending 5 years getting nailed in the ass by a horny inmate and people respect me for my “squeaky clean” stance.
Point 2: Wife
This is a tricky one. Nepotism always has and always will exist, it’s human nature to try and protect your own. I have been approached by personal friends that have asked me to “put a word in for them” somewhere. You have to be really careful here because if you do put in a good word for a friend/relative and that person quits on day two or isn’t really qualified enough for the job, you are going to look pretty stupid. You are also putting your customer in a very uncomfortable and embarrassing position, he doesn’t want to offend you by saying no.
There is another approach which is better for both yourself and your wife.
Keep your ears open, make discrete enquiries to see if anybody is looking to hire and then get your wife to formally apply for the job herself. She will no doubt be asked “how did you hear about us?” during the interview, and it won’t hurt her chances if she mentions at that point that her husband has dealt with that firm in the past. That way you are not directly involved, you haven’t stepped out of bounds with your client and if successful, you wife has won the job on her own merits. All you’ve done is nudge her in the direction of some companies that might be hiring.
Believe me, this approach is effective. The last three positions I’ve taken were never advertised in the press. In business it’s not what you know, it’s who you know. My wife told me about a rumor that my present employer was looking for someone, but hadn’t advertised the position yet. I nipped around the office a week later with a CV and was offered the job on my terms the very same day. Guess he figured that if I had the balls to simply stroll into his office and demand a hefty salary for a job that wasn’t even advertised yet, I’d have the balls to earn money for him.