Accommodation on the Faroe Islands is limited, expensive by European standards, and books out months ahead in summer. The 18 islands have no resorts or chain hotels — stays are in small guesthouses, converted farmhouses, a handful of boutique hotels in Torshavn, and increasingly, Airbnb apartments in village houses. This scarcity is part of the charm: your hosts are often fishermen, farmers, or crafts people who serve home-cooked dinners and can point you to hiking trails and viewpoints that no guidebook covers. Book early, bring a credit card (cash is rarely used), and embrace the intimacy of staying in communities where everyone knows each other.
- Torshavn — Best for first-timers and dining scene
- Vagar Island — Best for airport convenience and iconic hikes
- Eysturoy — Best for central location and scenic variety
- Bordoy / Klaksvik — Best for the Kalsoy lighthouse hike
- Mykines — Best for puffin encounters and remote island experience
- Sandoy — Best for off-the-beaten-path tranquility
Torshavn
Best for: Best for first-timers and dining scene | Price range: $90-250/night
The world’s smallest capital has the Faroe Islands’ best concentration of hotels and restaurants. Hotel Foroyar perches on a grass-roofed hillside above the city with stunning harbour views from 1,800 DKK per night. Hotel Hafnia on the harbour square is the classic central option from 1,200 DKK. Guesthouses and apartments in the old town start from 700 DKK. Torshavn has the islands’ only nightlife, the Michelin-starred KOKS (relocated from Leynar), and the Tinganes parliament headland. Regular buses and helicopter services connect to all other islands.
Vagar Island
Best for: Best for airport convenience and iconic hikes | Price range: $75-200/night
Home to the international airport and the two most famous hikes — Mulafossur Waterfall and Sorvagsvatn/Leitisvatn lake — Vagar is a practical first-night or last-night base. Hotel Vagar near the airport offers modern Scandinavian design from 1,400 DKK. Guesthouses in Sorvagur and Sandavagur start from 600 DKK. The village of Gasadalur (Mulafossur) and the Mykines puffin ferry both depart from this island. Accommodation is limited so book well ahead. The Atlantic Airways helicopter to Mykines departs from the airport.
Eysturoy
Best for: Best for central location and scenic variety | Price range: $70-150/night
The second-largest island has the Gjogv gorge village, Slattaratindur (highest peak), and the Funningur grass-roofed church. Gjaargarður Guesthouse in Gjogv is one of the most atmospheric stays on the islands from 800 DKK with home-cooked dinners. The village of Eioi and Oyri have small guesthouses from 600 DKK. Eysturoy is connected to Streymoy by bridge and tunnel, making it a convenient base for exploring multiple islands. The new Eysturoy Tunnel with its underwater roundabout art installation connects directly to Torshavn.
Bordoy / Klaksvik
Best for: Best for the Kalsoy lighthouse hike | Price range: $65-160/night
Klaksvik is the Faroes’ second-largest town and the base for the ferry to Kalsoy island’s Kallur Lighthouse hike. Hotel Klaksvik offers comfortable rooms from 1,100 DKK. Guesthouses near the harbour start from 550 DKK. The town has a swimming pool, a church designed by the architect of the Sydney Opera House organ, and good supermarkets for self-catering. The northern islands of Vidoy and Kunoy with their dramatic cliff faces are accessible by tunnel from Klaksvik.
Mykines
Best for: Best for puffin encounters and remote island experience | Price range: $100-130/night
The westernmost island has just 10 permanent residents and thousands of Atlantic puffins. Staying overnight — when day-trippers leave and you have the island to yourself — is magical. The only accommodation is a handful of guesthouse beds and the Mykines Guesthouse from 900 DKK including meals. Book months ahead for summer. The ferry from Sorvagur cancels frequently in bad weather, so build flexibility into plans. No shops or restaurants exist beyond the guesthouse. Bring snacks and waterproofs.
Sandoy
Best for: Best for off-the-beaten-path tranquility | Price range: $60-110/night
The southernmost inhabited island is the Faroes’ most overlooked — gentle rolling hills, sandy beaches (rare in the Faroes), and the Sandur village with the oldest church on the islands. Accommodation is limited to a few guesthouses and farm stays from 500-800 DKK. The new Sandoy Tunnel connects directly to Streymoy, making day trips easy but overnights rewarding for the solitude. The island has excellent birdwatching and coastal walks. Bring everything you need as services are minimal.
Quick Comparison
| Neighbourhood | Best For | Price Range |
|---|---|---|
| Torshavn | Best for first-timers and dining scene | $90-250/night |
| Vagar Island | Best for airport convenience and iconic hikes | $75-200/night |
| Eysturoy | Best for central location and scenic variety | $70-150/night |
| Bordoy / Klaksvik | Best for the Kalsoy lighthouse hike | $65-160/night |
| Mykines | Best for puffin encounters and remote island experience | $100-130/night |
| Sandoy | Best for off-the-beaten-path tranquility | $60-110/night |
Budget Tips for Faroe Islands
The Faroes are expensive — budget at least 1,500 DKK per day for accommodation, food, and transport. Guesthouses with half-board (dinner included) offer the best value since restaurant options outside Torshavn are extremely limited. The Strandfaraskip bus pass covers all buses and inter-island ferries for 500 DKK for 4 days or 700 DKK for 7 days — exceptional value. Helicopter flights between islands cost just 125-255 DKK and offer spectacular aerial views. Self-catering from supermarkets in Torshavn or Klaksvik saves significantly. Book the Mykines ferry as early as possible.
Frequently Asked Questions
What is the best area to stay in Faroe Islands for first-time visitors?
Torshavn is the best area for first-timers in Faroe Islands. It offers best for first-timers and dining scene with convenient access to major attractions.
What is the cheapest area to stay in Faroe Islands?
For budget travelers, Sandoy offers affordable accommodation starting from $60.
Is it safe to walk around Faroe Islands at night?
The main tourist areas in Faroe Islands are generally safe at night, particularly Torshavn and Vagar Island. Use normal precautions and keep valuables secure.