We really enjyoed staying at Hotel Føroyar: we loved the location above Tórshavn with beautiful views of the town and the Atlantic Ocean from every room and the restaurant.
The totally quiet room had a modern scandinavian design and was bright and airy. Housekeeping was pretty good, they could have replaced our juice glasses with new ones rather than rinsing them with clear water only, though.
Fast WiFi was available.
Dinner at "KOKS" restaurant was great: world class cuisine, presentation and very good service, let alone the gorgeous views.
Breakfast buffet (included) in the same restaurant was a whole different experience, though: limited items, slow restocking, mostly invisible non-proactive service staff. They really have to adjust here and bring breakfast near the quality level of dinner.