Race has no part in my response:
I voted yabu.
You've handled this really badly.
Fine to say her friend had crossed boundaries in giving her a quick shoulder massage, but you're assuming your wife will cheat simply because he has said he's relaxed about adultery.
That's a pretty sexist way of looking at things. With the attitude you've displayed, and the controlling tendencies you're showing (booking a hotel is to attempt to take the choice away from her), I can completely understand why your wife has reacted the way she has and in her shoes I'd have probably reacted the same.
(Before you jump on me, I've never so much as looked at another man when I've been in a relationship, while having close male friends).
If this bloke does try anything then your wife is perfectly capable of shutting him down.
Your handling of this whole matter has been to disregard a long standing friendship, behave in a controlling and coercive manner and distrust your wife for no other reason than you dislike her friend.
I would say exactly the same if the gender were reversed, too.
However, having said that, I appreciate and understand that you feel this man behaves inappropriately towards your wife and you're entitled to feel that a stronger boundary needs to be in place.
If you'd spoken to your wife as an equal about this, respecting her own autonomy and judgement you would probably have found she'd have been much more empathetic and been happier to put distance between herself and her friend for the sake of your relationship. Instead, you've behaved as she has no control and is guilty by association. You haven't shown her any trust whatsoever.
Regardless of the motivation, your behavior has been coercive and so you have forced her not to choose between you and him, but to choose between your control and her independence. Of course she's asserting that.
Regarding race, if you don't want posters to refer to it then don't mention it in the first place. You said it was relevant but failed to explain exactly how. Personally, I don't think it is from what youve said. Ultimately, you're uncomfortable with a friendship she has and would like her to put distance between them - if you'd approached it differently instead of "laying down the law" each time, the outcome would have been very different, I'm sure.
You said your Christian, which would lead posters to infer a rigid morality and social codes, yet in later posts say you attend church for high holidays only...Like most people in the UK who are nominally 'Christian' then, so how is it relevant?
You both need to examine your behaviours, here.