Where to Stay in Panama City: Best Areas and Hotels

The best areas to stay in Panama City are Casco Viejo and Bella Vista. Casco Viejo is a great choice for history and nightlife, while Bella Vista, my favorite area, offers a central base with restaurants, hotels, and easy access to the waterfront.

Marbella suits travelers looking for an upscale, central location, while Obarrio and El Cangrejo offer a good mix of restaurants, public transportation, and accommodation for different budgets. Calidonia is another option if keeping costs down is your priority.

For modern hotels and ocean views, consider Punta Pacifica. Costa del Este offers a quieter residential and business setting, but has very few hotels and is farther from the main sights. The Tocumen Airport area is most useful for an overnight stop before or after a flight.

Below, you’ll find the advantages and drawbacks of each area, along with recommended hotels to help you choose where to stay.

Where to stay in Panama City: Best areas and hotels

1. Casco Viejo, where to stay in Panama City for history and culture

Located on a small peninsula overlooking the Pacific, this historic district has come a very long way over the last couple of decades.

After years of decline towards the end of the 20th century, it is now an excellent place to stay in Panama City for travelers who wish to immerse themselves in Panamanian history and culture.

Casco Viejo, also known as Casco Antiguo, is not to be confused with Panamá Viejo, the ruins of the original city.

The Old Quarter features a rich collection of Spanish colonial architecture, a reminder of Panama’s importance during the colonial era, including its time within the Viceroyalty of New Granada.

Casco Viejo is among the most interesting places to stay in Panama City. Its bohemian, international atmosphere brings together historic buildings, boutique hotels, cafés, and rooftop bars.

There is plenty of nightlife in this district, which makes it appealing if you enjoy going out in the evening. However, rooms near busy bars can be noisy, so check recent guest reviews if a quiet night’s sleep is a priority.

When choosing accommodation, pay attention to the exact location and surrounding streets. Check recent reviews for comments about walking back after dark, and ask your hotel for advice on local routes.

The Panama City Metro does not run within Casco Viejo, so factor in the journey to a station if you plan to use it regularly.

The lodging options range from budget-friendly backpacker hostels to boutique hotels and apartments and lofts, including more luxurious options for travelers with a larger budget.

Most hotels occupy low-rise buildings. If you would like a view of the Pacific Ocean or the city skyline, look for an upper-floor room and confirm the view before booking, as it depends on the building’s location and the room’s orientation.

BEST PLACES TO STAY IN PANAMA CITY IN CASCO VIEJO

($$$) American Trade Hotel: A restored 1917 building on Plaza Herrera gives you a base for exploring Casco Viejo on foot, with an outdoor pool waiting when you return. The room categories offer different settings: Panorama has top-floor, floor-to-ceiling windows, while Jardin adds a private garden courtyard. There is also a restaurant and Tiempos coffee shop.

($$) La Isabela Suites: The two-bedroom suites have two bathrooms, a living room and a full kitchen, making this one of the options I would compare first for a family stay in Casco Viejo. One-bedroom suites suit couples who also want room to cook and spread out. The historic centre’s churches, galleries and restaurants are within walking distance.

($) Hotel Magnolia Boutique: Set in a restored French colonial mansion, this boutique hotel has triples, quadruples and suites alongside its smaller rooms. The quadruple with a private external bathroom is worth distinguishing from an en-suite room. Larger categories include a suite with a balcony and a 40 m² Premium Suite with a bath, while the Canal Museum is nearby.

2. Marbella, where to stay in Panama City for an upscale, central location

This district near the waterfront is one of Panama City’s upscale areas, with modern hotels, residential towers, and opportunities for high-end shopping.

Marbella is a great place to stay in Panama City for those looking for a central location with restaurants and services nearby. It is home to foreign embassies, international banks, fashion boutiques, upscale restaurants, and luxury condo towers.

The nightlife tends to be stylish and relatively expensive, particularly around hotel bars and upscale venues.

Accommodation can also be pricier here, although you can find more affordable options.

Travelers on a tighter budget should compare smaller hotels farther inland, including those around Calle Margarita de Vallarino. Closer to Avenida Balboa and the waterfront, you will find larger hotels, some offering ocean views.

BEST PLACES TO STAY IN MARBELLA

($$$) Hilton Panama: An outdoor rooftop pool, eforea spa and 24-hour gym give you plenty to do between outings along Avenida Balboa and the Cinta Costera. Rooms include categories with views over Panama Bay. I would consider it for a waterfront stay with time set aside for the hotel, especially if a swim and a spa treatment are part of your plans.

($$) Plaza Paitilla Inn: The bay is the main attraction here, with panoramic views from the pool and gym as well as designated bay-view bedrooms. Superior rooms offer king or double-bed layouts, while the Executive categories put more emphasis on the outlook. Its Punta Paitilla address places you at the eastern end of the waterfront area covered in this section.

($) Nomada Republic Hotel Panama City: Converted shipping containers house studios and family accommodation, with in-room kitchens for preparing your own meals. It is a different setup from the large hotel towers nearby, on Calle 55 Este in Marbella. I would look at it for a longer city stay when cooking facilities matter more than a full range of hotel leisure facilities.

3. Bella Vista, my favorite area to stay in Panama City

In Spanish, the name of this district means “beautiful view,” and its waterfront skyline makes the name fitting. Located a taxi ride away from Casco Viejo, Bella Vista features the high-rises and luxury condominium towers that appear in many Panama City postcards and travel brochures.

Bella Vista is my favorite area to stay in Panama City. I particularly like the convenience of having restaurants, shops, and public transportation close at hand, while being within easy reach of the waterfront.

It is a practical base for exploring the city and a good choice if you prefer the modern side of Panama City.

Bella Vista covers a broad area, including neighborhoods such as Marbella, Obarrio, and El Cangrejo, which I discuss separately in this guide. For this section, the focus is on the area around Avenida Balboa and the streets inland from the waterfront.

The modern buildings are among its most recognizable features, but the central location and everyday conveniences are the main reasons to stay here.

You can head out for breakfast, pick up anything you need at a supermarket, and choose from plenty of places for dinner without planning every outing around a taxi ride.

One of the biggest advantages of staying near Avenida Balboa is access to the Cinta Costera, the waterfront promenade where you can walk, exercise, and enjoy views of the bay and the city skyline. If this is a priority, check your hotel’s exact location: being in Bella Vista does not necessarily mean you are a short walk from the water.

Traffic can be heavy in Panama City, including Bella Vista. Choosing a hotel close to a Metro station and within walking distance of restaurants can help reduce your reliance on taxis.

Depending on where you stay, stations such as Iglesia del Carmen or Santo Tomás may be convenient.

For a quieter stay, check recent guest reviews for comments about traffic and nightlife noise. A room on a higher floor may offer better views, but confirm the room category before booking, as some rooms face neighboring buildings rather than the ocean.

Despite its upscale towers, Bella Vista also has budget hotels and simple guesthouses, alongside mid-range options and larger hotels with pools and other facilities. This variety makes it worth considering even if you are traveling on a tighter budget.

Convenience is at the heart of staying in Bella Vista. Here you can find everything from fast-food restaurants to upscale bistros, along with public transportation, tour operators, casinos, shops, and bars.

If you want a central base with plenty of services and access to the waterfront, this is the area I would consider first.

BEST PLACES TO STAY IN PANAMA CITY IN BELLA VISTA

($$$) Riu Plaza Panamá: An outdoor pool, gym and a choice of restaurants make this a full-service city hotel in the financial district. Bedrooms range from Deluxe King and twin rooms to family categories and suites. The pool gives you somewhere to spend a slower afternoon, while the buffet breakfast and Spanish à la carte restaurant broaden the dining options.

($$) The Executive Hotel: Standard King rooms have a private balcony and a desk, while the doubles come with two full-size beds. There is also an outdoor pool and gym, along with the Executive Café for meals. The financial-district location makes it a straightforward option for combining work with sightseeing, without needing to move to a suite just to have some outdoor space.

($) Hotel California Panama: Single, double and triple rooms, plus a King Suite, give you several sleeping arrangements in this simple hotel on Vía España. Bedrooms have private bathrooms with showers and cable TV. Free private parking and a gym add practical facilities, making it worth comparing if you are bringing a car and mainly need a base for days out.

4. Obarrio and El Cangrejo, where to stay in Panama City for good value

These two neighborhoods within the broader Bella Vista district can be good options for travelers who would like to experience a more residential side of Panama City, while keeping restaurants, shops, and public transportation close at hand.

El Cangrejo and Obarrio sit on either side of Vía España and offer somewhat different atmospheres. Obarrio has more of a business-district feel, with office buildings, upscale hotels, and restaurants. El Cangrejo has a more relaxed, residential character, particularly around Vía Argentina.

For travelers watching their spending, El Cangrejo is particularly worth considering. Budget hotels and backpacker hostels sit alongside comfortable mid-range properties, making it a useful area to compare prices.

Obarrio also offers good-value accommodation, although its more upscale hotels can be considerably more expensive.

There are plenty of restaurants, cafés, and bars across both neighborhoods, with choices ranging from inexpensive local meals to international dining. In El Cangrejo, the streets around Vía Argentina are a good starting point for finding somewhere to eat or spend an evening.

You will also find opportunities to try Panamanian seafood dishes, although the dining options extend well beyond seafood. Having a choice of places to eat nearby makes both neighborhoods convenient for longer stays.

If you plan to explore by public transportation, check the walking distance from your hotel to Iglesia del Carmen or Vía Argentina Metro station. Staying near a station can make getting around easier when traffic is heavy.

For a quieter stay, read recent guest reviews before booking a room facing a main road or close to bars. Also check the facilities carefully: air conditioning, a pool, and breakfast can make a difference to the value of your stay, but they are not included at every property.

Choose El Cangrejo for a relaxed atmosphere and budget-friendly options, or consider Obarrio for business hotels and a more upscale setting. Both are practical bases if you value everyday convenience over staying among the historic sights of Casco Viejo.

BEST PLACES TO STAY IN OBARRIO AND EL CANGREJO

($$$) Bristol Panama, a Registry Collection Hotel: Panamanian art and curated exhibitions give the communal spaces a local focus, while SalSíPuedes draws on Panamanian cooking with international influences. The spa and garden terrace make it appealing for a stay with slower evenings. Its financial-district address also works for business trips, with suites and residences available alongside the hotel accommodation.

($$) Tryp by Wyndham Panama Centro: The rooftop pool and whirlpool are the main reasons I would keep this hotel on a shortlist in El Cangrejo. A gym and steam room add to the leisure facilities, and there is a restaurant and bar on site. The location lets you head out on foot to the neighbourhood’s restaurants and evening venues.

($) Hotel Milan Panama: There is a useful spread of bed configurations here: doubles have two full-size beds, while Family Suites combine a king bed with two full-size beds. The hotel has covered parking and a restaurant and bar, with meals charged separately. On Calle Eusebio A. Morales, it puts you among El Cangrejo’s places to eat.

5. Calidonia, shopping and affordable accommodation

Calidonia is worth considering if you are looking for affordable accommodation in Panama City and prefer a busy, everyday urban setting. Its commercial streets offer a different experience from the boutique hotels of Casco Viejo and the upscale towers along the waterfront.

Shopping is one of the neighborhood’s main draws, with stores and local businesses serving residents as well as visitors. It is a practical area for picking up everyday essentials and finding inexpensive places to eat.

The streetscape varies, with older buildings alongside more recent developments. When choosing accommodation, pay attention to the exact location and surrounding streets, rather than relying on the neighborhood name alone.

For budget travelers, it is worth comparing simple hotels with backpacker hostels elsewhere in the city. A private room can sometimes offer better value, particularly if you are sharing the cost. Check recent reviews for cleanliness, reliable air conditioning, and noise before booking.

You will also find local restaurants and casual places to eat, which can help keep your daily spending down. If you plan to use public transportation, check the walking route from your hotel to the nearest Metro station.

Properties closer to Avenida Balboa and the waterfront may appeal if you want access to the Cinta Costera. Check the actual walking distance and room description, as a nearby address does not guarantee an ocean view.

Calidonia is an option for travelers whose priority is price. Before booking, read recent comments about the immediate surroundings and ask the hotel for advice on getting back after dark.

BEST PLACES TO STAY IN CALEDONIA

($$) Hotel Ojos Del Rio: A practical option in Calidonia, with a gym, shared lounge and free parking. Quadruple rooms make it worth considering for a family travelling together, while some other categories add a balcony or dining table. The Presidential Suite goes further with a kitchen and separate living space, useful if you want more independence during a longer stay.

($) Eurohotel: The quadruple rooms have four separate single beds, a useful arrangement for friends who want to share without sharing beds. Standard doubles are more compact, at 15 m². There is a restaurant and free parking, and the Vía España address suits a stay focused on getting around the city. I would choose it for these practical features rather than its advertised pool, which has an undated closure notice.

($) Hotel Caribe Panamá: A rooftop pool and terrace with views across the city and bay give this Calidonia hotel somewhere to unwind above the surrounding streets. Accommodation includes single, double and triple categories, and the Sol del Caribe restaurant serves meals on site. It is an option to compare if you want a pool without moving to one of the waterfront towers.

6. Costa del Este, an upscale area with very few hotels

Costa del Este offers a quieter, more upscale setting away from the busiest parts of central Panama City. However, the hotel selection here is extremely limited, so you will have far fewer places to choose from than in neighborhoods such as Bella Vista, Obarrio, or El Cangrejo.

This is primarily a residential and business area, with modern office buildings and high-rise condos. The few hotels available tend to cater to business travelers and visitors with a higher budget, leaving little choice for those looking for inexpensive accommodation.

Costa del Este is worth considering if you have work commitments nearby or specifically want to stay in this part of the city.

For most visitors, though, I would compare the available hotels and prices before committing to the neighborhood. With so few alternatives, finding accommodation that suits both your dates and your budget can be harder.

The area has restaurants, shops, and residential towers overlooking the Pacific, but it is farther from Casco Viejo and many of the city’s main sights. Traffic can also be heavy, particularly during commuting hours, so factor in travel time if you plan to do plenty of sightseeing.

Choose Costa del Este if its location suits your plans and you find a hotel you like. If you want a broad selection of accommodation across different price categories, the central neighborhoods offer more choice.

BEST PLACES TO STAY IN PANAMA CITY IN COSTA DEL ESTE

($$$) The Santa Maria, a Luxury Collection Hotel & Golf Resort, Panama City: An 18-hole, par-72 course designed by Jack Nicklaus makes golf the clearest reason to stay here. The resort also has an outdoor pool, children’s pool and spa, with Panamanian design details in its suites. It is in the Santa María community near Costa del Este, so I would choose it for golf and time at the resort rather than walking between city sights.

($$$) The Westin Panama: Rooms have Westin’s Heavenly Beds and workspaces, with city, partial-ocean and ocean outlooks depending on the category. An outdoor pool, gym and Sensory Spa round out the facilities. The Costa del Este location is particularly useful for work nearby; for a short sightseeing trip, I would weigh that convenience against the journeys to Casco Viejo and the centre.

7. Punta Pacifica, waterfront views and luxury hotels

If you are in the Casco Viejo district and look towards the east, your eyes will likely be drawn to the imposing high-rises of Punta Pacifica, home to the distinctive sail-shaped tower formerly known as the Trump Ocean Club and later the Bahia Grand.

This building, whose silhouette recalls Dubai’s Burj Al Arab, now houses the JW Marriott Panama. It is one of the most recognizable landmarks on the city’s skyline.

Punta Pacifica is all about luxury, with waterfront condominium towers, upscale restaurants, and accommodation offering spectacular ocean views.

If you are looking for a modern hotel with a pool and a room overlooking the Pacific, this is an area worth considering. Confirm the room category before booking, as not every room has the same outlook.

Accommodation can be pricier than in other districts, but do not assume these hotels are all-inclusive resorts. Check which meals, facilities, and services are included when comparing rates.

Punta Pacifica is also worth considering for dining and drinks with a view, even if you do not stay here. Hotel restaurants and bars provide options for an evening out, although the neighborhood’s main appeal is its waterfront setting and upscale accommodation.

For sightseeing beyond the neighborhood, factor in transport and traffic. If your priority is exploring historic streets on foot, Casco Viejo may suit you better; Punta Pacifica is a good option if you prefer modern comforts and ocean views.

BEST PLACES TO STAY IN PUNTA PACIFICA

($$$) JW Marriott Panama: Private balconies and ocean-facing accommodation make the waterfront setting a big part of the stay. The infinity pool overlooking the bay is another reason to spend time here, with poolside food and drinks at Azul and Panamanian cooking at MASI. The hotel currently advertises remodelling in some areas, so confirm what is affected for your dates.

($$) Courtyard by Marriott Panama Multiplaza Mall: Being inside the Multiplaza shopping complex makes this an easy choice if you want shops and restaurants close at hand. Rooms have mini-fridges, and the hotel adds an outdoor plunge pool, gym and its own dining options. I would consider it for a shopping-focused visit or a practical city stay where everyday convenience takes priority over a waterfront view.

($) Casa Areka: An outdoor pool, shared kitchen and communal areas make this hostel appealing if you want to cook and meet other travellers. There are private rooms as well as dormitories, and breakfast is included. A supermarket across the street makes self-catering easier; nearby bus connections are useful for heading towards Casco Viejo or the Panama Canal.

8. Tocumen Airport Area, only if you want to stay close to the Airport

Located about 30 minutes away from Casco Viejo, at least on a day without heavy traffic, the area surrounding Tocumen International Airport offers a mix of luxury resorts, budget inns, boutique hotels, and long-term apartments.

The lodging options around tend to be very affordable and if you stay closer to San Antonio and Camino Real, lodging becomes more modest, more affordable and quieter since this area is not directly below a major flight path.

Many districts surrounding Tocumen are residential and industrial, but you can still find restaurants, shopping malls filled with both Chinese and luxury goods coming from the Panama Canal, nightclubs, and some casinos.

BEST PLACES TO STAY IN TOCUMEN AIRPORT AREA

($$) Crowne Plaza Airport by IHG: The free airport shuttle runs hourly, 24 hours a day, serving both Tocumen terminals. That is the strongest reason to choose it for a late arrival, early flight or overnight connection. An outdoor pool, gym and Jetstream restaurant give you somewhere to spend the hours between flights, and the hotel also offers day-use stays.

($$) Riande Aeropuerto Hotel Casino: A pool and Jacuzzi, gym and La Veranda restaurant give this airport hotel more to offer than a bed between flights. The complimentary Tocumen shuttle makes it worth comparing for a stopover, while the leisure facilities suit travellers with time to relax before continuing their journey. Check the shuttle timetable against your flight, particularly for an overnight arrival.

($$) Courtyard by Marriott Panama Metromall: With Metromall’s shops and restaurants within walking distance, this is a practical option for combining shopping with a stop near Tocumen Airport. Rooms have mini-fridges and workspaces, while an outdoor pool, gym and Centro restaurant cover time spent at the hotel. I would consider it for a short stopover; for sightseeing around Casco Viejo and the waterfront, I would stay more centrally.