Where to Stay in Panama City in 2025 – Best Areas & Neighbourhoods
Looking for a comfortable place to stay in Panama City?
I enjoyed Panama City. Especially Casco Viejo. You’ve probably seen photos of the skyline, and know about the industrial Panama Canal. So you might have certain expectations about this city.
I did too. But luckily, I was VERY wrong. Panama City is great! I and Callie both loved strolling down the long boulevard, watching people play basketball, and enjoying the weather. Hopefully, Panama City is part of a longer itinerary. Because the country is definitely worth it.
In a rush?
- For first-timers: Hotel Casa Panama
- For business: Hotel Mio Panamá
- For the luxurious: The Santa Maria
Where to Stay in Panama City
I found picking where to stay in Panama City a bit overwhelming. There are so many areas, but I wasn’t sure about any of them. What are they like? Are they safe? But after extensive research and our visit, I’m confident in my knowledge of the city and can recommend the following areas and neighbourhoods.
✈️ Planning a trip? We ALWAYS use SkyScanner for flight ticket deals!
Casco Viejo – For first-timers
This neighbourhood is the oldest in Panama City. It’s also known as Cosco Antiguo and San Felipe. It’s a UNESCO World Heritage site and for a good reason.
Casco Viejo is beautiful. It’s full of old colonial buildings influenced by French, Spanish and Caribbean architecture.
Where to Stay in Casco Viejo
There are quite some options in Casco Viejo, all offering different things in very different price ranges.
Budget option – Selina Casco Viejo Panama City
You can’t really go wrong with a Selina. They’re a little expensive for a hostel. But private rooms are cheaper than other hotels in the area. And, Casco Viejo is a VERY popular area, which means all the prices for hotels are inflated anyways. Selina hostels always have great locations, great staff, and great food.
Check out the Selina in Casco Viejo here!
Mid-range option – Hotel Casa Panama
Another very popular hotel is Casco Viejo. They sell out quite often! Rooms include private bathrooms and air conditioning, which is always very welcome in the sticky Panama City.
The hotel also has a spa and pool. All for a very decent price. What else could you need?
Hotel Casa Panama is right behind this link!
High-end option – AmazINN Places Rooftop and Jacuzzi VIII
An entire apartment in the historic district of Panama City. It has a private rooftop area with a jacuzzi, air conditioning, a full kitchen, and honesty, everything you expect of an apartment. Reviews mention a very quiet, and overall great location.
Get your apartment with jacuzzi here!
Things to Do & See in Casco Viejo
- Explore the old cobblestone streets
- Visit the Casco Viejo Metropolitan Cathedral
- Visit Plaza de Francia
Obarrio – For Business Travellers
Obarrio is part of the Up & Coming Bella Vista area and is within the financial district. Full of shops, bars, restaurants, and other businesses. A great place if you’re visiting for a city trip, or here for business.
Where to Stay in Obarrio
Budget option – Zebulo Hostel
This is the cheapest option in all of Obarrio. The location is great, and the staff are nice, but, it is a budget hotel. It’s still scoring a 7.7, which is decent, so it’s not a bad hotel. Price/quality wise, it is a very good deal.
Save some money by booking Zebulo Hostel!
Mid-range option – Hotel Mio Panamá
A great hotel with a rooftop pool. Good reviews, good location, good price. I mean, I don’t think you can go wrong here. You get parking included in case you have a rental car. Which is a bonus.
Book Hotel Mio Panamá for a comfortable business trip!
High-end option – Sortis Hotel, Spa & Casino, Autograph Collection
Not a very catchy name, but I bet you love it when you click the link and get to see the pictures. The large rooms will make you feel like a movie star. It’s pricey, but you get what you pay for.
This hotel has multiple pools and restaurants, so you won’t even have to leave the building for some diversity.
Treat yourself at Sortis Hotel, Spa & Casino
Things to Do & See in Obarrio
- Shop at the Soho City Center
- Check out the architecture of the F&F Tower
Marbella – For the luxurious ones
Also part of Bella Vista, Marbella is a prosperous area right next to Obarrio, located at the seafront. It has exclusive restaurants, bars, and hotels. If you enjoy the finer things in life, this is the place to be.
Where to Stay in Marbella
Budget option – Hostal Yoha
To be incredibly honest, I didn’t expect there to be a budget option. But hey, there is! And with a private room option, so not a shared dorm.
But to be clear: if you are a budget traveller, Marbella is not great. The amenities in the direct vicinity of the hostel are expensive. But that being said, there are quite some hostels in this area. Just make sure you pick the more affordable restaurants.
Get your affordable room at Hostal Yoha now!
Mid-range option – Hospedium Princess Hotel Panama
Quite the mouth full. This hotel is within the World Trade Center and has an on-site restaurant. The rooms look great and include a work desk for the ones on business. The location is great, and it has a nicely sized pool as well.
Book your stay at Hospedium Princess Hotel Panama now!
High-end option – Hilton Panama
How can I not mention a Hilton hotel while talking about luxury stays? At the Hilton, the most basic room is already incredible. But if you want to go all out, you can get a Master Suite which even includes a private hot tub. If you like luxury, this is the way to go!
Get your luxury fix at the Hilton in Panama City!
Things to Do & See in Marbella
- Go to the Hard Rock Cafe
- Visit the Balboa Boutiques strip mall
- Enjoy the view at Playita de la Cinta Costera
San Francisco – For foodies and partygoers
San Francisco is known as the gastronomic area of Panama City. It has a diverse range of restaurants, from traditional cuisine to international options like Italian and Japanese. For foodies looking for unique experiences, check out Mercado de Mariscos (The Fish Market) where you can taste fresh seafood and mingle with locals.
Where to Stay in San Francisco
Budget option – SERENADE Lodging Rooms
This hotel has a great location according to guests. The rooms are tidy but basic and have everything you need. Air conditioning, free Wi-Fi and some accommodations have a kitchen to cook your own food to save some extra money. Great for budget travellers!
The affordable rooms are right here!
Mid-range option – Aloft Panama
A modern hotel with a 24-hour ‘refuelling’ station where you can get drinks, snacks, sandwiches and wraps. The rooms and suites are equipped with a flat-screen cable TV, air conditioning, and a fridge. You’ll also find a dining area and coffee machine. Every room comes with a desk, complete with a connectivity panel and an ergonomic chair. So good for business travellers that need to join meetings.
Don’t wait and refuel at Aloft Panama!
High-end option – Ramada Plaza by Wyndham Panama Punta Pacifica
This quiet, pretty hotel has all you need. An outdoor pool, spa and wellness centre, on-site restaurant, and a fitness centre.
The rooms look modern and are complete with a minibar and air conditioning. The great quality of the beds is often mentioned in reviews as well!
Get your well-deserved wellness treatment at Ramada Plaza!
What to Do & See in San Francisco
- Check out the Multiplaza Pacific mall
- Have a beer at Istmo Brew Pub
El Cangrejo – For families
El Cangrejo is famous for its buzzing nightlife, featuring trendy bars, brewpubs, and lively casinos scattered along Via Argentina. You’ll discover a wide range of international restaurants, luxurious cafes, and laid-back coffee joints. Moreover, there are shopping malls with some popular clothing retailers. The Parque Andrés Bello is a favourite spot for joggers and walkers.
Where to Stay in El Cangrejo
Budget option – Blu Hostel
Finally. A proper budget option. A private room for a bargain price. This hostel is clean, well-located and has a terrace. Very basic, but come on. What can you expect for this price? It’s clean and in good shape, so you don’t really need anything else.
Some rooms seem to have a kitchen, which is great, but it isn’t specified anywhere. Not sure what’s going on there.
The cheapest option on the list is found right here!
Mid-range option – Best Western Plus Panama Zen Hotel
Best Western hotels are generally a safe choice. This one has a great location in El Cangrejo and even has a pool. The rooms look modern and comfortable, with air conditioning and a coffee machine.
Like relaxing? Best Western Plus can be found here!
High-end option – Waymore Hotel Spa & Casino
A new hotel that is worth a mention in this list. Not many reviews on Booking.com, but they do have a bunch of good ones on Google, scoring a 4.7 on average. The hotel has a restaurant, wellness centre, and a gym.
The rooms are new so you can expect decency. Clean, tidy, with a slightly rustic feel.
A high-end option in El Cangrejo is waiting for you!
What to See & Do in El Cangrejo
- Go to Via Argentina for good food
- Enjoy the greenery of Parque Andres Bello
Costa del Este – For peace & quiet
A nice neighbourhood and the east side of the city. Far from all the bustling nightlife, but it still has a few cafes, restaurants, and shops. It’s mostly a quiet residential area, but there is an industrial zone as well. There is not that much to do here, but that might just be what you’re looking for!
High-end option 1 – The Santa Maria, a Luxury Collection Hotel & Golf Resort
This hotel is so fancy I’m not sure what to write. It has a large outdoor pool, an incredible restaurant, a bar, a fitness centre, and much more.
The rooms are incredible as well. Large, and modern, and they include bathrobes and slippers. As you can expect from a classy resort.
Feel like royalty at The Santa Maria!
High-end option 2 – The Westin Panama
Just as classy as the last one, but more a hotel than a resort. It also has a couple of restaurants, a pool, a gym, and a FREE airport shuttle.
The rooms are quite similar but the views are not as good. That being said, it does have a better location closer to the city itself.
Head to the east of Panama City at The Westin!
What to See & Do in Costa del Este
- Head down the Corredor Sur
- Treat yourself in one of the spas
Things to do in Panama City
You’re unlikely to just want to sit in your hotel room. After you’ve checked out the neighbourhood you’re staying in, you should definitely do one of these three things:
#1 – Take a day trip to the San Blas Islands
I’m starting the list with something that isn’t even in Panama City. I know. But Oh my, are the San Blas Islands worth the journey. It’s honestly the closest you will get to paradise on earth.
Check out this day tour of the beautiful San Blas Islands!
#2 – Visit Casco Viejo
If you’re not staying in Casco Viejo, you should 100% visit this area. It is the old colonial part of Panama, restored to its former glory. Its beautiful colourful architecture will leave you wandering the cobblestone streets with your mouth open in amazement. I recommend having a drink or a bite at Marzola Parrilla for their awesome decor!
#3 – Check out the Panama Canal
The world-famous Panama Canal can’t be missed when in Panama. Nearly everybody has heard of it. An incredible feat of engineering which you can visit by boat. It’s best to combine this with a jungle tour.
Visit the Panama Canal and the jungle on this Day Tour!
FAQ- Where to Stay in Panama City
We’ve covered places to stay. And we covered some things to do. Now let’s answer some of the frequently asked questions!
Where should I stay in Panama City?
That fully depends on your expectations. I can highly recommend Casco Viejo, especially if it’s your first time. But If you’re after a city break and would like to do some shopping, I recommend Obarrio or San Francisco.
Where is cheap to stay in Panama City?
I recommend El Cangrejo due to the many hostels and other budget options. Despite there being many cheaper options, the area is still very much worth checking out.
Are there any areas to avoid in Panama City?
Yes. There is quite a list of areas to avoid in Panama City:
- Ancón
- Calidonia
- Curundú
- El Chorillo
- San Miguelito
- Juan Díaz
- Parque Soberania
- Río Abajo
- Tocumen
- Veracruz Beach
Other than the list, bus stations are known to be less safe and petty crimes like pickpocketing can happen anywhere.
Which is the best area to stay for Nightlife in Panama City?
Both San Francisco and El Cangrejo are good for nightlife. Both areas have quite a lot of pubs and bars. But Casco Viejo nowadays might be an even better option with nightclubs and other nightlife.
Where to stay in Panama City for first-timers?
Although all aforementioned areas are fine for first-timers, the most touristy area is Casco Viejo. Here you’ll find more tourists, and more English-speaking staff in hotels, bars, and restaurants. If you’re an inexperienced traveller, this might be quite nice.
Final Thoughts – Where to Stay in Panama City
Panama City. A massive Central American destination for many people, for different reasons. Some people are on a longer trip and use it as a stopover. You might be here for business or are just in need of some good weather and shopping malls.
There are many, many hotel options and other places to stay in Panama City. But depending on your reason for travelling, different areas may be more appealing. Now you’ve read this post, you’ll be confident in picking the right area for you!
