Estuvimos invitados anoche y gustaban la comida en mi casa.
We had guests last night, and they enjoyed the food at my house. Does my sentence make grammatical sense in Spanish'
Not quite. Imagine that they didn't like the food at all, so instead of using "gustar", you use "disgustar", which is the opposite. In English, disgustar is not exactly disgust, but they are obviously closely related, as you can see, and their meanings are close enough to make a point here. Would you say "We had guests last night and they disgusted the food"? or "the food disgusted them"? Well, the way you've written your sentence in Spanish would be like "they disgusted the food", but using "gustar" instead of "disgustar". You must say:
Tuvimos invitados anoche, y les gustó la comida en mi casa.
We had guests last night, and the food "gusted" them in my house.
We had guests last night, and to them, the food was pleasing in my house.
Otherwise, use "disfrutar", which actually means "enjoy" (gustar means to like), and it is easier to use:
disfrutaron la comida