It doesn't seem that far-fetched to me. Jack is insanely rich now, and Larry wanted to show him how the insanely rich live. For what it's worth, Larry's friend picked the venue, Larry was just going to see him; I didn't see any hints that Larry intended any catting around.
I did love seeing how Bertha coached Gladys into shutting the sister down; they're finally starting to appreciate each other as people. "Are you ill?" 🤣