Have had some luck in finding the Manx Arms.
Appears it was changed to the Railway Hotel, sometime in the 1870's, and still stands in Station Rd, Kirk Michael today. It hasn't been licensed since the 1 st world war, but was a cafe in the 1950's and later.
I will try and get a full address, and write to the owners, they may have some history.
Lovely chap from the Heritage Museum was most helpful when contacted, and I take my hat off to them.
Regards Cathy