Where to Stay in the Faroe Islands in 2023 | Best Areas

If you want to spend time surrounded by majestic landscapes, the Faroe Islands stand out as a top choice. But choosing where to stay in the Faroe Islands requires a closer look.

Why You Should Visit the Faroe Islands in 2023

The Faroe Islands, a territory of the Kingdom of Denmark, includes a cluster of 18 islands between Iceland and Scotland. These closely grouped islands are mountainous and full of untouched natural beauty.

From the striking cliffs to the serene fjords, the landscapes of the Faroe Islands are hard to match.

It’s an unforgettable place to visit, thanks to its distinct environment and unique culture. Yet it also has several main islands to choose from when deciding where to stay.

The 5 Best Parts of the Faroe Islands

The Faroe Islands do not have a lot of hotels, with just a little over a dozen options across all the islands, along with a few dozen apartments and guesthouses. Many of these options are in and around Tórshavn, which is the largest town and capital of the archipelago.

To help decide where to stay, here are some of the best towns and neighborhoods on the islands:

1. Tórshavn: Best for first-time visitors and families
2. Runavík: Best for nightlife and water sports
3. Vágar: Best for nature lovers and budget travelers
4. Sandoy: Best for local culture and authentic experiences
5. Suðuroy: Best for tranquility and fewer visitors

The Best Areas and Hotels in the Faroe Islands

The Faroe Islands don’t receive too many visitors, which means that the area doesn’t have many hotels. You’ll find far more apartments and guesthouses, but you first need to decide where to stay on the Faroe Islands.

1. Tórshavn

Tórshavn, or Havn, is the capital of the Faroe Islands. It’s also the largest city and where most tourists flock, despite having a population of less than 15,000.

Nestled between rugged landscapes and serene waters, Tórshavn gives you access to iconic sites, such as the historic Tinganes district with its turf-roofed houses. You can also find cascading waterfalls and captivating wildlife just beyond the city’s limits.

Yet, as the biggest city, Tórshavn also has a strong cultural scene, with several art galleries and live music venues. Many visitors also enjoy Tórshavn due to its central location. You can easily visit nearby islands for short day trips.

The bottom line is that Tórshavn combines the islands’ natural beauty, local heritage, and modern comforts to create a welcoming place for visitors. It’s a great choice for any travelers wanting an authentic experience.

Things to Do in Tórshavn

• See more of the island with a panoramic view from the grassy hill at Fort Skansin.
• Visit The Nordic House to learn more about Faroese culture or enjoy a music concert.
• Gaze at the unique geometric designs of the ceiling inside the Tórshavn Cathedral.
• Walk through the historic Tinganes district in the center of the city to see the old grass-roofed houses.

Where to Eat in Tórshavn

• Fisk og Kips for affordable fish and chips and outdoor seating.
• Angus Steakhouse for a large family lunch or dinner near the historic Skansin.
• Áarstova for fine dining with a selection of European and Scandinavian cuisine.
• Irish Pub Tórshavn for cold beer and fried food with a view of the harbor.

Tórshavn Budget Hotels

• Hotel Brandan. This affordable little hotel is further from the beach and the center of the city compared to other options but offers many wonderful amenities, including a restaurant and a hotel bar. It also has a sauna, free breakfast, and friendly service.
• Hotel Djurhuus. Enjoy the view of the coastline from this budget hotel near the edge of the city. The rooms include several great features, including heated floors and access to a lounge area with free hot beverages.

Tórshavn Mid-Range Hotels

• 62N Hotel. This hotel features stylish décor and furnishings, along with free breakfast and a convenient location. It’s about a three-minute walk from Tórshavn Harbor and several nearby cafés, bars, and restaurants.
• Hotel Hafnia. Located in the heart of the city’s Old Town neighborhood, this hotel places you close to some of the area’s top attractions. It also features a restaurant with international cuisine, seafood, and local delicacies.

Tórshavn Luxury Hotels

• Hotel Tórshavn. Stay just 1,000 feet from the historic Tinganes district, with views of the harbor. You can also grab a bite from the onsite restaurant that serves Italian, Asian, and Mexican cuisine.
• Havgrím Seaside Hotel 1948. This is truly one of the most luxurious hotels on all the Faroe Islands, with spacious rooms that feature large windows looking out over the sea. The hotel also has all the amenities you could want, including free airport shuttle service.

See All Hotels in Faroe Islands

2. Runavík

Runavík is the largest village on Eysturoy Island (East Island), which is just east of Streymoy. The village sits in an area shielded from the open sea and includes a mixture of natural beauty and urbanized development.

While Tórshavn is the capital and a popular choice, staying in Runavík also offers its own unique charm when visiting the Faroe Islands.

Runavík is strategically located in the heart of the archipelago, allowing you to hop on over to nearby islands. Runavík has the longest fjord of any area of the Faroe Islands, which makes it the prime spot for water activities.

Diving and kayaking are especially popular in this area. You can also find some amazing spots for hiking and biking, as it’s a little less mountainous compared to some of the other islands.

Runavík offers a serene backdrop for nature enthusiasts and hikers. The town’s friendly community and local amenities provide an authentic glimpse into Faroese life.

Things to Do in Runavík

• Kayak or walk around the rocky shores of the Toftavatn nature preserve.
• Learn more about the art of boat building with a trip to the Boat and Art Museum.
• Visit the local tourist information center for recommendations from the locals.
• Stroll around the Port of Runavík to explore the village’s main shops or watch the boats.

Where to Eat in Runavík

• Café Cibo for a large breakfast or a cup of coffee to start your day right.
• Farhat’sa Pizza for fast, affordable pizza with dine-in or takeout options.
• Etika for Japanese cuisine, including sushi, with generous portions.
• Matstovan for steak or seafood at a quiet little restaurant away from the sea.

Runavík Budget Hotels

• Greystone House. Located a short drive from Runavík, this historic house was built right off the coast. It includes two bedrooms, a single bathroom, and modern amenities, including a fully equipped kitchen and a flat-screen TV with streaming services.
• Gamla Mýra. Live like the Faroese of the late 1800s with a stay in this home built over 120 years ago. It has a full kitchen and a terrace with views of the sea and is located near the center of the village of Syðrugøta.

Runavík Mid-Range Hotels

• Hotel Runavík. This 3-star location is the only hotel in Runavík, making it a common choice for visitors, but it still stands out for offering comfortable, elegant accommodations. The rooms feature large TVs, an electric teapot, and access to the onsite restaurant.
• The Cozy Red House. This house is in Morskranes, which is on a separate peninsula from Runavík, which may appeal to those wanting to stay in a remote destination. You won’t have many neighbors, allowing you to settle in and enjoy the solitude of the region.

Runavík Luxury Hotels

• Brand New 2-Bedroom Apartment. Located south of Runavík, this apartment features two bedrooms and stylish modern furnishings. It also has views of the sea, air conditioning, and a fully equipped kitchen.  
• Unique Boathouse. Built onto the side of the mountain, this home appears rustic on the outside but has a minimalist, modern design on the inside. It has one full bed in the bedroom and a sofa bed in the living room to accommodate couples or families.

See All Hotels in Faroe Islands

3. Vágar

Vágar is an island known for its dramatic, rocky cliffs. It’s west of the main island of Streymoy and includes several interesting villages to explore, including Gásadalur.

It’s the top place on the island for visitors. Two large mountains flank the village, which also features cliffs dropping hundreds of meters to the sea. It’s a remote destination that was previously only accessible via a long hike on foot.

There’s now a road into the village, making it easier to reach. Vágar is also home to the only airport, making it a convenient place for travelers.

Yet, it’s also centrally located. You can easily hop on a boat to spend the day exploring a neighboring island. Choosing Vágar offers a balanced blend of accessibility, natural wonders, and cultural immersion, making it a top choice for nature lovers.

However, it’s also one of the most affordable places to stay on the Faroe Islands. You can expect lower prices for apartment rentals and food.

Things to Do in Vágar

• Gaze at the majestic Múlafossur waterfall, which is just two minutes away from the village of Gásadular.
• Get a different view of the coastline from the Sunset Viewpoint observation deck.
• Walk around the perimeter of the impeccably well-kept Sandavágur Church and cemetery.
• Hike the trails to get a view of the Trøllkonufingur (Troll Women’s Finger) rock formation.

Where to Eat in Vágar

• Smidjan for cold beer and pizza, cheeseburgers, fried chicken, or fish.
• Restaurant Café Pollastova for seafood and other local cuisine with a cozy atmosphere.
• Café Zorva for coffee or a filling meal at a restaurant next to the airport.
• Fish and Chips for fast, cheap fish and chips and other affordable food.

Vágar Budget Hotels

• Cottages by the Sea. Located in the village of Sørvágur, this cozy little home is an affordable place to stay for those wanting to explore the island of Vágar. It features two bedrooms, one bathroom, and a comfortable seating area next to the kitchenette.
• Cory & Torfinn House. This is another cheap option in the village of Sørvágur, which is just down the road from the airport. It has a relatively spacious living area that was recently renovated, along with a fully equipped kitchen.

Vágar Mid-Range Hotels

• Brand New Apartment. Located in Miðvágur on the east side of the island, this newly built apartment includes comfortable, modern furnishings and amenities. It’s only five miles from the airport and includes two bedrooms with a queen bed and two twin beds, making it perfect for families.
• Turf House Near Airport. Relax in this quaint little home with a full kitchen, a dining area, and a dishwasher. It’s in Miðvágur and includes access to a 24-hour front desk, free Wi-Fi, and a flat-screen TV.

Vágar Luxury Hotels

• Gásadalur Apartments at World Famous Waterfall. This is the only hotel in the region and near one of the island’s main attractions. You can enjoy close views of the waterfall, along with a balcony, a seating area, and a fully equipped kitchen.
• Hyggelig bolig i Vatnsoyrar. You don’t need to pronounce the name of this rental to enjoy its comfortable furnishings and amazing views of the surrounding region. It’s a three-bedroom home, which is a top choice for large groups and families.

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4. Sandoy

Sandoy, or Sand Island, is a hilly island with hiking trails, rocky beaches, and amazing coastal views. It’s just south of Streymoy and includes several towns and villages.

Skálavík is one of the main towns on the island and the only spot with a hotel. As with most of the islands, Sandoy has unspoiled landscapes with rolling hills, rugged coastlines, and quaint villages.

However, Sandoy also has a slower pace of life compared to some of the other areas, making it an ideal retreat for those seeking serenity.

Sandoy’s smaller size creates a strong sense of community, giving you more of a chance to experience authentic Faroese culture intimately with local life and traditions. Exploring its historic sites, like the iconic Dunes of Sandur, can also help give you more insight into Faroese heritage.

While less touristy, Sandoy’s seclusion and unpretentious charm make it a top pick for those who want a genuine experience with breathtaking scenery and a peaceful atmosphere.

Things to Do in Sandoy

• Get a selfie next to the Biggest Blue Mailbox in the World.
• View interesting works of contemporary art at the Sandur Art Museum.
• Learn more about the life of early settlers with a trip to the Sandur Village Museum.
• Hike to the colorful Yarn-Bombed Rock, which is covered in yarn and connected to a local legend.

Where to Eat in Sandoy

• Cafein a Molini for coffee, breakfast, lunch, or dinner at the most popular restaurant on the island.
• OC Joensen for authentic local cuisine from a small restaurant in Skálavík.
• Sandoy Pizza for pizza and soda pop at a restaurant near the northern ferry terminal.
• Kafé Breiðateig for steak and seafood from a brasserie with an elegant atmosphere.

Sandoy Budget Hotels

• Cozy Home in Beautiful Surroundings. Located in Skopun, which is at the northern tip of the island, this home is a convenient place to stay, as it’s near the ferry terminal and a few popular attractions, including the massive mailbox. It has three bedrooms and five beds.
• The Real Faroese Experience. Stay at a remote home in the village of Skálavík, on the eastern side of the island. This home has three bedrooms, a bathroom, and all the modern amenities you could expect, including a flat-screen TV and free Wi-Fi.

Sandoy Mid-Range Hotels

• Nordic Serenity. This apartment rental is in Kirkjubøur, which is the southernmost town on the island of Streymoy, instead of Sandoy, but is a short ferry ride away. If the places in Sandoy don’t have any vacancies, this sprawling apartment with five bedrooms may be your best option.
• Mølin Guesthouse. As the only hotel in the area, this is a popular choice for those staying in Sandoy. It has a garden, a large terrace, a restaurant, and a bar, providing everything you need for an enjoyable stay.

Sandoy Luxury Hotels

• Vacation Home. This vacation home is in Sandur, on the south part of the island, and near the beach. It’s a secluded spot with a lovely garden, three bedrooms, and enough space for a large group of travelers.
• Okkara Summarhús á Sandi. This next three-bedroom vacation home is also in Sandur. It’s a beachfront property and one of the most luxurious places to stay on the island, along with having a large children’s playground and access to hiking and walking trails.

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5. Suðuroy

Suðuroy, or South Island, is the furthest south of the Faroe Islands and one of the most overlooked by visitors. There are several towns, including Hvalba, which is where you’ll find the island’s sole hotel.

As the southernmost island, Suðuroy has a unique blend of dramatic landscapes and a very vibrant culture. Its diverse topography includes everything from soaring cliffs to tranquil fjords.

The southern location also makes it more remote and less likely to attract tourists. It’s a quieter place to stay in an area surrounded by quiet islands. Suðuroy also has charming villages, such as Tvøroyri and Sumba, that encapsulate the Faroese way of life.

You can immerse yourself in local customs and enjoy the island’s warm hospitality.

This combination of natural beauty, cultural authenticity, and a sense of discovery makes Suðuroy a compelling choice, offering a well-rounded Faroe Islands experience that’s both enchanting and enriching.

Things to Do in Suðuroy

• Enjoy the fantastic views near the rock formation known as Ásmundarstakkur.
• Learn about early Viking settlers as you explore the small Myri Museum in Hov.
• Travel to the southern tip of the island to get a closer look at the Akraberg Lighthouse.
• Hike through Hvannhagi, which is a lush valley with rolling green hills and mountains as backdrops.

Where to Eat in Suðuroy

• Café Karinsa for coffee and pastries in the village of Hvalba.
• Matstovan í Porkeri for local cuisine from the only restaurant in Porkeri.
• Bryggjan for Filipino cuisine at a buffet in the village of Vagur.
• Matsovan Garðslon for unique fish and chips at a family-style restaurant.

Suðuroy Budget Hotels

• Summarhús29. You and your fellow travelers can spread out and enjoy some privacy in this large but affordable rental home in Tvøroyri. It’s a comfortable place to stay with two separate bedrooms and views of the sea from almost every window.
• Stunning Ocean View Penthouse Apartment. This large penthouse apartment is in Øravík and includes a large living area with windows that look out over the sea and mountains. It’s a lovely rental unit with sleek, stylish furnishings throughout every room, including the bathroom.

Suðuroy Mid-Range Hotels

• Nice One-Story House in Suðuroy. Featuring a large patio, a full kitchen, and an outdoor cooking area with a grill, this comfortable home was designed for entertaining guests. It also includes three bedrooms and a living room sofa bed for groups of all sizes.
• Det Lille Gule Hus. This seaside home is in Trongisvágur, near the center of the island, and includes three bedrooms and a fully stocked kitchen with a microwave, toaster, and dishwasher. But it stands out for its older décor and vintage charm.

Suðuroy Luxury Hotels

• Heima í Stovu. This charming hotel is the only hotel on the island and a perfect place for those staying in Hvalba, as it has a restaurant and a bar. The rooms include sitting areas and access to shared areas, such as an outdoor picnic area and a garden.
• Kristinhús. This four-bedroom villa is in Froðba, which is toward the southeastern end of the island. It’s another secluded destination with few neighbors but many modern conveniences, including a washing machine, a dishwasher, and a fridge.

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So Where Should You Stay in the Faroe Islands?

🏆 Best for First Timers	Tórshavn
🛥️ Best for Watersports	Runavík
🌳 Best for Nature Lovers	Vágar
🏹 Best for Cultural Experience	Sandoy
🧘‍♀️ Least Crowded	Suðuroy

Tórshavn is the capital and most populous place, giving you more access to shopping and dining options. Runavík is a bustling little town known for its bars and water sports.

The islands of Vágar, Sandoy, and Suðuroy are more remote and great for going out and exploring the landscapes.

While these are our favorite areas, you can’t go wrong staying in any of the little villages on the Faroe Islands. So what are you waiting for — book your trip today and experience for yourself all that these picturesque islands have to offer. Happy travels!