For the price, it's acceptable.
The breakfast was great.
There is a big supermarket just 200 meters away.
Downsides:
Reception was open only 8 hours per day (14-22). It could be an issue for some travelers.
It's 2 km uphill from the city center. There is a free bus, but it doesn't go that often.
There was no ventilation in the room. We had to open the window once every few hours but Faroe Islands are cold, windy and rainy.