Sounds really weird. But I’m not a fan of touch. I couldn’t put myself in a situation like that. I wouldn’t want to be the person getting hugged but I most definitely couldn’t be on the other side acting as the abuser. I can mildly understand his point, but from your writing, it sounds like it is making you uncomfortable. Especially since you told him right away that you wouldn’t like to do that. The good thing was he respected your choice to say no. You could always revisit this idea later if you change your mind.