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Planning a trip to Panama City? You’re in the right place!
This vibrant capital is where gleaming skyscrapers meet centuries-old streets. We quickly discovered that it’s a city of contrasts, and where you stay has a big impact on your experience. From the cobblestoned charm of Casco Viejo to the sleek waterfront towers overlooking Panama Bay, each neighborhood offers a totally different experience.
Whether you want nightlife and history at your doorstep, a foodie-friendly base, or a luxurious stay with bay views, we’ve rounded up the best areas in Panama City, plus our favorite hotels for every budget. Let’s get into it!
Don’t Miss Out On Our Top Choice!
This is the hotel and area we loved the most and suggest booking ASAP!
Our personal FAVORITE area to stay in Panama City is Casco Viejo! This charming, historic area puts you within walking distance of iconic landmarks!
For a relaxing stay in the heart of the city, go with Amarla Boutique Hotel Casco Viejo. It blends colonial architecture with modern touches, and the rooftop terrace, complete with a pool, is gorgeous!
- Don’t Miss Out On Our Top Choice!
- Where to Stay in Panama City Map
- Overview of the Best Areas to Stay in Panama City
- Important Tip
- Where to Stay in Panama City
- Top Activities to do in Panama City
- Thanks for reading!
- Don't Forget Travel Insurance!
Where to Stay in Panama City Map
Overview of the Best Areas to Stay in Panama City
Not sure where to stay in Panama City? Don’t worry, we’ve been there! The first time we planned a trip, we weren’t sure if we should go for historic charm, modern convenience, or those famous bay views. After exploring different corners of the city, we’ve broken it all down to make things simple for you.
The good news is once you’re in a specific neighborhood, getting around is easy. During the day, you can walk around most areas and use the metro to get from one part of the city to another.
At night, we recommend sticking with Uber because it’s safe, affordable, and it saves you from navigating busy streets. Trust us, there’s no need to rent a car here – it’s more expensive than using Uber, and kind of a headache to be honest!
Here’s a quick overview of each area before we dive into the details:
- Casco Viejo – We think that Panama’s Old Town’s lively vibe and colonial architecture make it the perfect base for a first visit! Amarla Boutique Hotel Casco Viejo is a charming property right in the heart of the action.
- Obarrio – The city’s commercial core mixes skyscrapers with historic landmarks and lots of great restaurants. Bristol Panama offers a stylish stay with easy access to everything.
- El Cangrejo – This boho neighborhood is known for its cafés, international restaurants, and laid-back vibe. Gran Evenia Panamá Hotel is a top-rated pick here.
- Marbella – An upscale district along Avenida Balboa that puts you close to shopping, dining, and the waterfront. Hotel Las Americas Golden Tower Panamá offers a sleek but affordable base.
- Punta Patilla/Punta Pacifica – This sleek neighborhood boasts luxury towers and sweeping views over Panama Bay. Residence Inn by Marriott Panama City offers modern comfort and amazing city views.
Important Tip
Multiple Panama City trips have taught us that this city doesn’t reward spontaneity when it comes to planning. The good places get snapped up months in advance, leaving the overpriced and underwhelming options for last-minute travelers.
The sweet spot for booking Panama City accommodations is 3-4 months out—enough time to secure good rates but not so far ahead that you’re locking in plans excessively early.
Where to Stay in Panama City
Casco Viejo
Casco Viejo is the historic heart of Panama City, and we recommend staying here if it’s your first visit. It’s the most convenient part of the city because it’s close to everything, and is home to many key landmarks like the Metropolitan Cathedral, Plaza de Francia, and the Panama Canal Museum.
We stayed here on our first trip and loved being able to walk everywhere. The area is compact and easy to explore on foot, and it’s also super charming! We love the cobblestone streets and pretty colonial buildings. Each corner seems to hide a beautiful church, café, or viewpoint of the skyline across the bay.
Quite a few of the buildings around here have been restored, but many are still under renovation. This gives the area a very eclectic vibe, but it does mean there’s quite a lot of noise!
Casco Viejo does get busy, especially on weekends when locals and travelers alike flock here for the nightlife. It’s a really fun night out, don’t get me wrong, but if you’re looking for a calm, quiet stay, you might want to head elsewhere. Still, if you want history, culture, and a central base, this is definitely the neighborhood to choose!
Pros
- Historic charm with sights, restaurants, and bars all close by
- Walkable and great for first-time visitors
Cons
- Can feel crowded and noisy at night
- Some areas still under renovation
Central Hotel Panama Casco Viejo – $$$
Central Hotel Panama Casco Viejo is a polished, upscale option set in a beautifully restored 19th-century building right on Plaza de la Independencia. We love the elegant interiors, which mix classic design with modern amenities like a rooftop pool, a spa, and a fitness center. The on-site restaurant and bar are excellent if you want to enjoy a relaxed evening without leaving the property.
We love the location because it’s as central as it gets in Casco Viejo. Staying here puts you just steps away from the main squares, shops, and historic sites. Rooms are spacious and stylish, many with lovely city views. If you’re looking for comfort and convenience in the heart of Old Town, this hotel is hard to beat.
Rooms here cost between $175-$500 USD per night.
Check availability and book your stay here!
Amarla Boutique Hotel Casco Viejo – $$$
Amarla Boutique Hotel Casco Viejo is a stylish choice that feels intimate and personal. With just a handful of rooms, it has a cozy, home-like atmosphere, but one that still feels sophisticated. The design is thoughtful, blending colonial architecture with modern touches, and there’s a beautiful rooftop terrace with a plunge pool where you can soak up views of the neighborhood.
The hotel also offers a fantastic breakfast each morning and often organizes small experiences like rum tastings or cooking classes, which makes your stay feel extra special. It’s located right in the heart of Casco Viejo, so you’ll be within walking distance of restaurants, bars, and landmarks, making this both a gorgeous and convenient base.
Rooms and suites typically range from $250-$535 USD per night.
With limited rooms available, secure your stay here!
Hotel San Felipe – $
Hotel San Felipe is a pretty and budget-friendly option in Casco Viejo. It gives you a solid location close to the action, with clean and simple rooms that have everything you need for a short and comfortable stay. The staff are friendly and welcoming, which adds to the hotel’s appeal if you’re after something straightforward and reliable.
You’ll be able to walk to most of the area’s highlights, from Plaza Bolívar to the waterfront promenade, and the savings here mean you’ll have more to spend on dining out and exploring the city. For travelers looking for a no-frills stay in Panama’s most atmospheric neighborhood, Hotel San Felipe is a practical and affordable choice.
Expect to pay between $160-$250 USD per night.
Find the best prices on Booking.com!
Related Read: If you need ideas on how to plan a visit, our 3-day Panama City itinerary walks you through where to go, top restaurants, tours, and more!
Obarrio
Obarrio is the modern business and commercial center of Panama City, so it’s a great area to stay in if you want easy access to shopping, restaurants, and nightlife. The neighborhood is filled with skyscrapers, luxury hotels, and office towers, but you’ll also spot historic churches and older buildings tucked between the glass facades.
It’s very central, making it easy to get around the city, and Avenida Samuel Lewis and Calle 50 are the main arteries running through the area. It’s just an 11-minute Uber ride, or it takes about 15 minutes on the metro. The metro runs through Obarrio itself, and it’s safe to explore on foot during the day, so you won’t have trouble getting around.
Although we do prefer staying in Casco Viejo, we think that Obarrio is a great choice for travelers who are looking for convenience and international shopping and dining. The area can feel busy and fast-paced, but that’s part of its appeal if you like being in the thick of things. If you’d prefer a quieter, more historic atmosphere, Casco Viejo may suit you better, but Obarrio is perfect for a central, modern stay.
Pros
- Central location with shops, restaurants, and transport links
- Modern and convenient, ideal for business or leisure travelers
Cons
- Busy and commercial atmosphere
- Less historic charm compared to Casco Viejo
W Panama – $$$
W Panama is easily one of the city’s most stylish hotels. As you’d expect, it brings the brand’s signature bold design and vibrant energy to Obarrio!
Inside, you’ll find sleek rooms with floor-to-ceiling windows, contemporary art, and all the upscale amenities you’d expect. There’s a rooftop pool with skyline views, a trendy cocktail bar, and a lively restaurant, making it as much a social hub as a place to stay.
We love this hotel if you want something fun and luxurious with a modern twist. It’s close to Obarrio’s dining and nightlife, and the metro is just a short walk away, so you’re well-connected. It’s perfect for couples, friends, or anyone who wants a stylish stay in the city’s commercial hub.
Rooms here typically cost between $160 and $400 USD per night, depending on the season and room category.
Check availability and book your luxury stay here!
Bristol Panama – $$
Bristol Panama is a classy choice that balances comfort and sophistication. The interiors feel refined, with elegant décor, warm tones, and a boutique hotel atmosphere. The service is attentive and the on-site restaurant serves some of the best food you’ll find in a hotel at this price point! There’s also a spa, fitness center, and outdoor pool for when you want to unwind.
The location in Obarrio makes it easy to get to the city’s financial district, restaurants, and shopping malls. If you’re looking for a stay that feels upscale but still affordable, Bristol Panama is a solid pick.
Expect to pay between $140 and $300 USD per night.
Read all of the great reviews and book your stay here!
The Executive Hotel – $
The Executive Hotel is a budget-friendly option right in the heart of Obarrio. It doesn’t have a ton of personality, but it’s clean, comfortable, and offers excellent value for money. The rooms are spacious, there’s an outdoor pool, and the staff are friendly and helpful, which makes it a dependable base.
From here, you’re close to metro stations, dining options, and Obarrio’s main streets, so it’s a convenient place to stay if you’re looking for affordability without sacrificing location. It’s not the flashiest hotel in the area, but for the price and central setting, we think it’s a great choice.
Rooms range from $100 to $140 USD per night, including breakfast.
Check availability and book your stay here!
El Cangrejo
El Cangrejo is a trendy, bohemian neighborhood in Panama City. It’s known for its vibrant streets filled with cafés, international restaurants, and cool bars, which makes it popular with younger and more artsy travelers.
We like staying in this area because its relaxed, artsy vibe sets it apart from the more business-focused areas of the city. The area is also home to small boutique shops, local markets, and cultural spots like the Parque Omar, which is a large green space ideal for jogging and picnics.
This neighborhood is perfect if you enjoy walking around and discovering hidden gems. It’s well-connected via the metro and is just a short drive from Casco Viejo and Obarrio, so it’s easy to explore the rest of the city from here. While it’s lively and full of character, El Cangrejo is a bit quieter than the Old Town nightlife hotspots, which makes it a nice balance for travelers who want energy but not a crazy party scene.
The main downside is that it can feel a little spread out compared to Casco Viejo, so some attractions may require a short taxi or Uber ride. Still, thanks to its boho, culturally rich vibe, it’s our top pick for longer-term travelers and those who have been to Panama City before!
Pros
- Bohemian, artsy vibe with cafés, restaurants, and bars
- Close to parks and cultural spots, good for young travelers and foodies
Cons
- More spread out than Casco Viejo
- Some streets can be busy with traffic
Exe Oriental Panamá – $$$
Exe Oriental Panamá is a chic, upscale hotel in El Cangrejo that blends modern comfort with a stylish design. The rooms are spacious with contemporary décor, and many offer city or skyline views. The hotel features a rooftop pool, gym, and on-site restaurant, so it’s easy to relax without leaving the property.
The location is ideal for exploring El Cangrejo’s cafés, restaurants, and boutiques, and it’s only a short drive to Casco Viejo or the waterfront. All in all, we think that this hotel is perfect for couples or travelers looking for a modern, polished stay in a lively yet manageable neighborhood.
Rooms here cost between $180-$200 USD per night.
Easily reserve your stay here!
Gran Evenia Panamá Hotel – $$
Gran Evenia Panamá Hotel is a comfortable option with modern decor and a lovely rooftop pool. The rooms are clean and well-equipped, and the hotel’s amenities are well-maintained, so we think that this place delivers great value for money.
It’s a perfect choice for travelers who want to be close to El Cangrejo’s bars, cafés, and local shops without spending a fortune.
The hotel also makes it easy to reach other parts of the city, thanks to nearby metro and taxi options. Breakfast is included, and you’ve got a handful of restaurants right on your doorstep, so it’s a central and convenient choice.
Expect to pay between $135 and $250 USD per night for a room or suite here.
See all the rooms available and book your stay here!
Best Western Plus Panama Zen Hotel – $
Best Western Plus Panama Zen Hotel is a highly rated, budget-friendly stay in El Cangrejo. It offers a solid level of comfort and convenience with spacious rooms, a small rooftop pool, and friendly staff. My favorite part is the view from the roof terrace!
I really like the location, too. It’s super central, which enables you to explore El Cangrejo on foot. There are plenty of restaurants and bars within walking distance of the hotel, so we think that this is a dependable pick for travelers looking to save on accommodations without sacrificing access to the neighborhood’s best spots.
Prices range from $115 to $175 USD per night, depending on the room category you choose.
Browse available rooms and get the best prices on Booking.com!
Marbella
Marbella is one of Panama City’s most affluent neighborhoods. If you’re looking for a more upscale experience, this is your area!
Marbella stretches along the scenic Avenida Balboa with views of Panama Bay. It puts you close to the city center, as it’s just a 10-minute Uber or subway ride over to Casco Viejo. However, you get a much more refined experience around here since instead of charmingly dilapidated buildings, you’ve got luxury apartment towers, high-end shops, and a wide waterfront promenade.
This neighborhood offers a comfortable, convenient, and polished base. The main downside is that it lacks the historic charm of Casco Viejo, and nightlife options are more subdued. But for that reason, we think it’s a fantastic choice for families or anyone who wants a relaxing trip away from the party scene. It offers a calm base while keeping you well-connected to the action, so it really offers the best of both worlds.
For me, the bayfront views are the biggest perk of staying here. I loved being able to walk and jog along the waterfront in the mornings and evenings, and the sunset views are fantastic.
Pros
- Upscale area with shopping, dining, and waterfront access
- Modern, polished atmosphere, ideal for business or couples
Cons
- Less historic character compared to Casco Viejo
- Nightlife is more subdued
Hilton Panama – $$$
Hilton Panama is a luxurious option in a prime location along Avenida Balboa. The hotel features spacious, contemporary rooms with floor-to-ceiling windows offering stunning views of the bay or city skyline. It has lots of glossy amenities, including an outdoor pool, full-service spa, fitness center, and multiple dining options. This includes a rooftop bar perfect for evening cocktails!
I think that this hotel is an ideal choice for travelers who want comfort and elegance while staying close to shopping, restaurants, and the waterfront promenade. The central location also makes it easy to reach other neighborhoods like Casco Viejo and El Cangrejo.
Rooms here cost between $250 and $550 USD per night.
Book your stay at the Hilton Panama here!
Hotel Las Americas Golden Tower Panamá – $$
Hotel Las Americas Golden Tower Panamá offers a polished stay with modern rooms and excellent city and bay views. There’s a heated indoor pool and a spa with massage cabins, a Turkish bath, and a sauna, as well as a salt water pool.
The hotel’s location along Avenida Balboa puts you within walking distance of restaurants, shops, and the waterfront. We think it’s perfect for travelers who want comfort, convenience, and a touch of luxury without the higher price tag of a premium hotel.
Rooms typically range from $215-$285 USD per night.
Rooms here book up fast, so secure your stay now!
Decapolis Hotel Panama City – $
Decapolis Hotel Panama City is one of the most budget-friendly options in Marbella. It’s not as luxurious as the options we outlined above, but it’s still modern, clean, and comfortable with a small outdoor pool and super-friendly staff.
The location is convenient for exploring the waterfront and nearby dining options, and taxis or Ubers make it easy to reach other areas of the city. For travelers who want affordability without sacrificing access to Marbella’s main attractions, we think that Decapolis Hotel is a smart pick.
Rooms cost between $90 and $220 USD per night, including breakfast.
Check availability and book your stay here!
Related Read: Once you have a hotel booked, it’s time to check off that bucket list! These are our favorite tours in Panama City that all have great reviews!
Punta Patilla/Punta Pacifica
Punta Patilla and Punta Pacifica are Panama City’s most upscale neighborhoods. They’re located on the peninsula along Panama Bay, and these areas are filled with modern skyscrapers, luxury condos, and high-end shopping. If you want a quiet and more refined stay, then we’re confident you’ll love this part of Panama City. The waterfront location certainly doesn’t hurt, either!
Staying here provides stunning views of the bay and easy access to streets that are lined with chic cafés, restaurants, and boutique stores. While there aren’t as many historic sights as in Casco Viejo, you’re just a short drive away from downtown attractions, including the Panama Canal and the Old Town.
Unfortunately, this area is not as well-connected by the metro as other parts of the city. However, it’s very safe and walkable for short distances. It’s also well-served by Ubers for longer trips to other parts of the city.
The main downsides are that nightlife is quieter here, and you’ll miss out on the bohemian charm of areas like El Cangrejo. Still, if you want modern luxury, bayfront views, and a central but calm location, Punta Patilla and Punta Pacifica are excellent choices.
Pros
- Upscale, safe neighborhoods with waterfront views
- Modern amenities and high-end dining options
Cons
- Less historic charm than Casco Viejo
- Quieter nightlife, not ideal if you want a lively bar scene
JW Marriott Panama – $$$
JW Marriott Panama is a glittering hotel in Punta Pacifica with stunning bay and city views. The rooms are spacious and elegantly designed, offering all of the luxury and comforts you’d expect from a high-end property. The rooftop infinity pool is a real highlight, as it looks directly out onto the water, and there’s a sleek fitness center and multiple dining options on site. We especially love the sophisticated bar with panoramic views.
The hotel is perfect for travelers seeking luxury and tranquility while staying close to the city center. Its location also makes it convenient for exploring other neighborhoods or visiting the Panama Canal. Basically, it’s got everything!
Rooms and suites here cost between $250 and $550 USD per night.
See all room and suite options and book your stay here!
Residence Inn by Marriott Panama City – $$
Residence Inn by Marriott Panama City is a comfortable apartment-style hotel that’s ideal for longer stays or families. The studios and suites include kitchenettes, and the property offers a rooftop pool with fantastic views, as well as a fitness center and casual dining.
The hotel’s location in Punta Pacifica is another strong selling point. It’s located close to shopping, restaurants, and the waterfront promenade. This hotel is a great pick for travelers who want convenience, comfort, and a home-like feel without spending a fortune.
Rooms range from $150 to $400 USD per night, including breakfast.
Check out all the studio options and book yours here!
Plaza Paitilla Inn – $
Plaza Paitilla Inn is one of the most wallet-friendly choices in Punta Patilla. It offers clean and functional rooms, great city views, and a great location in the heart of this upscale neighborhood. The hotel has a pool and friendly staff, and we think it provides good value for travelers who want to be in a safe, central neighborhood without breaking the bank.
From here, you can easily access nearby restaurants, the waterfront, and other key areas by Uber or taxi. For budget-conscious travelers who want comfort and convenience, Plaza Paitilla Inn is a reliable option. It also includes a delicious breakfast each morning, so you get a lot of bang for your buck here!
Rooms cost between $115 and $140 USD per night.
Book your stay at Plaza Paitilla Inn here!
Top Activities to do in Panama City
With your hotel in Panama City picked out, now it’s time to figure out what experiences you want to do while you’re here! From sailing on the Panama Canal to a tropical day trip to the gorgeous San Blas Islands, these are a few of our favorite tours that helped us see the best of Panama City and some adventures we still talk about!
- Sail on the Panama Canal – Seeing the canal is an obvious must-do, but not many people get the chance to sail on it! This full-day canal and jungle tour includes a boat ride on the canal itself, a chance to see the canal lock closest to the Caribbean Sea, a stop at a remote rainforest, and more!
- Visit the San Blas Islands – This tropical paradise is easy to visit on this all-inclusive tour to the San Blas Islands! You’ll check out a shipwreck and natural swimming pool, and enjoy the island scenery with all the logistics taken care of!
- Old Town Tour – Casco Viejo (aka Old Town) is full of landmarks, but you get way more out of it when you know what you’re seeing! This Casco Viejo tour paired us with an expert guide to see the sights. Plus, with our hotel in the area, we got ideas for great spots to explore on our own time!
- Lake Gatun Wildlife Tour – If seeing monkeys is on your bucket list, this Gatun Lake wildlife tour is my pick! It takes you up the Chagres River to Lake Gatun, where Monkey Island awaits. Expect to see cute little capuchins who will climb on board your boat, owl monkeys, and howler monkeys, too!
- Rainforest Day Trip – For a once-in-a-lifetime adventure, this Chagres Rainforest tour took us out of the city to see Chagres National Park. We had the chance to canoe, hike to a hidden waterfall, and meet the Embera people. This is a really remote area, so a tour here is a must.
Related Read: Want even more ideas on what to do? Check out our in-depth blog on our favorite activities in Panama City!
Don’t Forget Travel Insurance!
If you’re looking to save money on travel insurance, we currently use and recommend SafetyWing. We’ve been using their coverage since 2018 and they’ve had our backs when we needed emergency flights and got sick overseas.
SafetyWing is one of the cheapest providers out there and covers everything from medical costs to lost luggage, travel delays, and emergency flights. A huge difference we’ve found between them and other companies is that they let you take out a policy AFTER leaving your home country. We’ve also found it handy that it’s a monthly payment rather than a lump sum, and you can get a refund for unused time.
SafetyWing has helped us out in some scary situations before and their affordable coverage has given us peace of mind. You can read our honest review of SafetyWing for all the pros and cons.
Thanks for reading!
With so many choices of where to stay in Panama City, I hope this guide has helped you narrow it down! Whether you’re after a historic feel in Casco Viejo, being close to the waterfront in Marbella, or one of the other areas we recommend, I know you’ll love your time here.
Before you leave, have a look through all our Central America blogs here! We have quite the collection of itineraries, top activities, where to stay guides, and more. It will help you plan the best trip ever! I’ve also put a few helpful blogs below that you can check out.
12 Things to KNOW Before Booking a Trip to the San Blas Islands