Tom McHugo’s occupied the historic former Moloney’s and Monty’s hotel in the Hobart CBD

Tom McHugo’s will serve its last beers and parmis today as the owners reluctantly close the doors of this popular Hobart venue.

Head chef and manager at Tom McHugo's Hobart Hotel, Tom Westcott. Picture: Zak Simmonds

One of the Hobart CBD’s most storied hotels has served its last patron with the closure of popular gastropub Tom McHugo’s.

Husband and wife team Tom Westcott and Whitney Ball, who formerly ran the popular restaurant, Franklin, have reluctantly closed the venue after they were unable to renew their lease.

On their last day of trading on Wednesday, Mr Westcott said there had been an emotional lead up to closing day, with many former staff and customers visiting for one last meal.

The couple currently have no plans to reopen elsewhere.

Tom Westcott with wife Whitney Ball owners of Tom McHugo's. Tom McHugo's in Hobart had their final day of trade before closing. Picture: Nikki Davis-Jones

“It’s just a weird time for hospitality at the moment, there’s definitely been searches but we haven’t anything that has the same energy as this. It will be really hard to match it,” he said.

“There isn’t a venue like this.

“That’s what makes me the most sad, it’s been a pub for the community for so long.”

While the Tom McHugo’s closure has been forced due to the building owner Youth Hostels Association Australia declining to renew the lease, Mr Westcott warned multiple pressures on the hospitality industry were causing many small businesses to consider their future.

Mr Westcott said the cost challenges impacted all facets of the industry from venues to suppliers such as wine and beer makers and primary producers.

“The cost of goods associated with operating is just climbing and climbing,” he said.

“The cost of goods has doubled if not tripled in some cases over seven years.”

Tom McHugo's co-owner Whitney Ball. Picture: Zak Simmonds

Built in 1842, the two-storey property at 87 Macquarie St was originally known as the Hobart Hotel. It later became Maloney’s, which boasted an upstairs nightclub, and then evolved into Montgomery’s Hotel. When Montgomery’s closed in 2014, new licensees took over the space and opened The Fluke and Bruce, before Mr Westcott and Ms Ball started Tom McHugo’s there two years later.

A spokeswoman for the building’s current owner YHA Australia, which operates the adjacent YHA Hobart backpackers, declined to comment on plans for the site.