Ok, what would you do in his shoes? You come home and your wife confronts you about a hotel receipt for the night before. If you really hadn't had sex with someone else, would you admit that you had - and then head off to bed? Or would you say straight away, I know how this looks, but honestly, I didn't have sex with her?
He's obviously spent that "sleeping time" cooking up an ever more ludicrous story, laced with a bit of "honesty" (I would have slept with her if I'd been capable) so that when the truth does come out, the shock won't be as great. Once again, this man is following that script of only admitting to what you can prove; that he spent the night in a hotel with a woman.
I'm so sorry you can't be tougher Nice - all the advice on here about getting angry is completely sound. It's horrible having to confront this situation before Christmas, but confront it you must, if you are to ever have any hope of keeping some self-esteem.
Nice, you must know he is lying - really, don't you? He probably cannot believe his luck pulling the wool over your eyes like this. This just gives him a passport to further lies and deceit. Do you really want that for yourself?
A short sharp shock is what's needed to kick this sorry excuse for a man out of his delusion that he is entitled to do this.
Please don't accept this - it is not your fault, but letting him carry on as though nothing happened will be your fault. You're worth more than that, Nice Glasses!