There are not many hotels to choose between on Faroe Islands but Hotel Torshavn is a good choice. Location is great in the very central of Torshavn. Busstation and Ferryterminal just a few hundred meters away. From the airport it´s a 50 minutes trip by bus (90DKK) or taxi (175DKK).
Stayed three people in a familyroom (max 4 pers). The room was quite small, I do not understand how four people could stay there! The room was clean and had all the basics. The bathroom was not modern though, the shower is not separated so you will get a wet floor.
They serve a good breakfastbuffet. If you leave on a early flight they make sure you get breakfast as early as 05:45.
Serviceminded staff at the hotel, they arrange carrental etc and give advice on what to see.
Hotel Torshavn is a good choice in the fantastic Faroe Islands.
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