i have been there last week for a short holiday in FO islands.
the price is a bit higher than an hostel but quite low for the average in torshavn.
the hotel can also provide you a rent car for your holiday that you can pick up at the airport (for a very special price, lower than well known companies you find in every airport in the world).
they offer a great continental breakfast (7am - 10am), free wifi in every room (or a computer you can use for internet access if you don't have portable devices). large lcd tv in every room. the bathroom is very large for danish standards. beds are quite comfortable, maybe the walls are thin and there's a bit of noise sometimes from other rooms. free park in front of the hotel.
i had some little problems to contact the hotel the week before arriving, i think they don't read emails every day so be patient.
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