Where to Stay: Hotels, Hostels & Airbnbs

Updated: March 2026 | Reviewed by: Tórshavn Tourism Coordinator

Tourism in the Faroe Islands has grown exponentially, outstripping the actual physical bed capacity of the country during peak summer. Finding affordable accommodation requires booking 6-8 months in advance.

What is the best place to stay in the Faroe Islands?

Short answer: Tórshavn is the absolute best basecamp. Because the country is highly connected via sub-sea tunnels, you can sleep in the capital every night and comfortably execute day trips to Vágar, Streymoy, and Eysturoy without hopping between hotels.

  • Corporate Luxury: The most well-known high-end options are the Hilton Garden Inn Faroe Islands, the eco-certified Hotel Brandan, and the iconic turf-roofed Hotel Føroyar. Expect to pay premium European capital prices for these.
  • In the City Center: If you want to walk to restaurants and the harbor, Hotel Hafnia and Hotel Djurhuus (formerly Hotel Streym) are positioned directly in downtown Tórshavn.
  • Outside Tórshavn: Hotel Vágar is positioned literally next to the airport (Sørvágur/Vágar), perfect for late arrivals. In the north, Hotel Klaksvík serves as the only major hub for exploring the Northern Isles (Borðoy, Kunoy, Viðoy).

Airbnb and Local Guesthouses

Airbnbs have exploded across the islands, particularly tiny cottages (hjallur) or boathouses converted into short-term rentals in scenic villages like Gjógv, Sandavágur, and Tórshavn's old center (á Reyni).

While Airbnbs provide incredible village immersion, be aware that many Faroese politicians blame the Airbnb boom for the ongoing local housing crisis, as landlords pull long-term rentals off the market.

Budget Options (Hostels / B&B)

Property Type Notable Examples
Hostels Giljanes Hostel (in Sandavágur near the airport) and 62N Guesthouse / Hostel (in Tórshavn). Bunkbeds are the only true "budget" accommodation left in the country.
Guesthouses & B&Bs Gjáargarður Guesthouse (in Gjógv) is one of the most famous and incredibly scenic places to sleep outside the capital. Nordic Inn Torshavn and VisitHomes offer strong B&B alternatives.

Can you camp anywhere?

Absolutely NOT. Wild camping is strictly illegal in the Faroe Islands. You cannot simply pitch a tent on a mountain or sleep in your car on a turnout. All land is privately owned by farmers. You MUST stay at designated, paid campsites.