Were we wrong for telling this friend we don't want anything to do with him right now?

This is actually my husband's friend. They've been friends since they were 10 and he's practically a part of his family. My husband has a birthday recently. He's been dealing with some pretty bad depression lately. He did not have a good childhood which his best friend knows and something happened a few months ago that made him relive some trauma and put him through depression. I decided to let him have a guys weekend for his birthday and wanted his best friend to surprise him by taking him out to Florida and take him to Universal since he loves Harry Potter. I thought this was the perfect pick me up. I completely covered everything and gave his friend the money for an Airbnb for him, my husband, and 3 other friends to stay at. My husband hates hotels and his best friend knows this and why he has trauma with hotels so I thought an Airbnb would be perfect. Money to cover the drive. Money for them all to go to universal and extra incase they decided to go to Disneyland along with stuff for food. I trusted his best friend and he was helping me plan everything. I gave him the money a few weeks ago. They left last weekend and when my husband came back I asked how it was and he shrugged. He said he didn't want to sound ungrateful but they stayed at a shady motel which just caused bad memories. They went out to eat and to movies then the beach so it wasn't all bad. I'm like "That's it?" And he said yeah and it wasn't bad. I was really confused. I told him what his party was supposed to be and he confronted his friend because and his friend eventually confessed that him and his wife were facing a foreclosure and they decided to use the money to catch up on their mortgage and what was left he used for his birthday. I was pissed! My husband talked to him yesterday and said he needed a break from this friendship. His best friends mom and brother spoke to my husband and said we are overreacting and them losing their home is more important than a birthday party. And he should be grateful his friend took him out and happy they get to keep their home. I think it's the principal. I trusted him and he stole thousands of dollars from us. Like I get a foreclosure is more important than a birthday but it wasn't our foreclosure and it was our money. Plus he knows why my husband hates hotels. You would think he would be more sensitive to his friends trauma especially with him knowing my husband has been depressed. But his family thinks we are overreacting and being selfish.