The story of Hotel Føroyar stretches back to 1933, when a Faroese started a hotel business in a residential house at Kongabrúgvin in the heart of Tórshavn. The hotel soon expanded and changed hands several times, until the insurance company Tryggingarsambandið Føroyar bought the building in 1947. It was expanded further and soon it served both as hotel and as the office of the insurance company. In the late 1970's the building had become too confined to be both an insurance company and a hotel. As a result of this, Hotel Føroyar moved in 1983 to a new luxurious building above the town, with a magnificent view of Tórshavn, Nólsoy and the ocean.

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