Panama City is an interesting city that offers a vibrant mix of old-world charm and modern energy- a combo of colonial streets, towering skyscrapers, and tropical coastlines. So, whether you’re visiting for history, business, a quick layover, or just passing through on your way to the beach, choosing the right neighborhood can make all the difference in the world and in this guide, we break down the best place to stay in Panama City based on your travel style — whether you’re a first-time visitor, luxury seeker, culture lover, or beach enthusiast- we have some useful tips for all kinds of travelers.
But first, let’s cover some basics…
Helpful Tips For Visiting Panama City
For cheap flights to Panama, check out the our Qatar Airways link to save big on all flights to Panama.
For cheap accommodation in Panama, use our Booking link to get up to 15% off an all stays in Panama.
If you want to rent a car in Panama, this AutoEurope link will get you 10% off on all car rentals in town.
And for the best travel insurance deals for Panama, I’m always using and personally recommending SafetyWing.
First-Time Visitors: Where to Feel at Home Instantly
When it comes to visiting Panama City for the first time, Casco Viejo is definitely a place that can’t be missed. In the past, it was abandoned and full of dilapidated buildings, but now it has become the city’s cultural crown jewel with its Spanish colonial architecture, cobblestone streets, and vibrant plazas. You could quite easily spend an entire day wandering the churches, rooftop bars, art galleries, and coffee shops that serve Panama’s famous Geisha coffee.
Additionally, it is quite small and walkable, and thus perfect for those who have not yet figured out the city. Being here allows you to be near top tourist spots such as the Panama Canal Museum, Independence Square, and Las Bóvedas. When it comes to accommodation, La Isabela Suites presents luxurious boutique apartments with up-to-date facilities located in historic buildings, while Hotel Casa Panamá – a mixture of nightlife, comfort, and colonial style.
And if you want a more lively atmosphere, then Tantalo Hotel is the place to go. It has its own rooftop bar, and the area offers a mix of co-working, bar vibes, and community events, where you can definitely meet other travelers.
For History: Casco Viejo
In addition to being a convenient place to stay in terms of discovering the city’s highlights, Casco Viejo is also the historic district of Panama City and a UNESCO World Heritage site. Its cobblestone streets, colorful colonial buildings, and the ocean views with the backdrop of the city’s modern skyline have made it a favorite among first-time visitors and history buffs, but if you stay here, stick around and don’t go outside of the surrounding neighborhoods; they can feel a bit rough.
A couple of other accommodation suggestions that are closer to the main historic attractions include The American Trade Hotel or the Sofitel Legend Casco Viejo, a five-star property that combines French elegance and Panamanian heritage. Alternatively, there’s also Magnolia Inn, a colonial mansion that was renovated, and it now provides dorms and private rooms for visitors.
Best Area to Stay for Visiting the Panama Canal
On the other hand, if the main item on your bucket list is visiting the Panama Canal, we have a few suggestions for this, too. The Canal is technically outside of the city, but not too far; however, traffic can be so unpredictable, and it pays to find a place nearby.
It won’t take much time to get from any point in downtown to the Miraflores Locks (the most famous spot for viewing the Canal) by taxi or Uber, about 15–20 minutes and there’s also a bus running from Gran Terminal Nacional de Transporte (which is right next to Albrook Mall) to the destination.
The best place to stay while going to the canal is El Cangrejo, a neighborhood that is very modern and centrally located. A couple of our favorite hotels in the area include Wyndham Panama City and Best Western Plus Panama Zen Hotel, or if you are looking for a cheaper option, Mamallena Hostel is always a great choice.
Best Place To Stay In Panama City Near The Airport
Panama City is served by two airports for international flights: Tocumen International Airport (PTY), which is the main hub, and Panamá Pacífico International Airport (BLB). Depending on traffic, Tocumen is a 30–40 minute drive from the city center. If you are going to have a very early flight or arrive late, staying at an accommodation near the airport might be less scenic but surely convenient. Crowne Plaza Panama Airport is the closest accommodation to the airport and the most reliable one, with free shuttle service, an onsite restaurant, a pool, and all the necessary things for a stress-free overnight stay. Budget travelers might go for Express Inn PTY Aeropuerto.
In case you want to have some leisure time but at the same time catch a flight quickly, Costa del Este is a classy residential area, situated between Tocumen and downtown Panama City. It’s a relatively calm area, with a few modern high-end hotels around, like The Westin Panama.
In case you are flying out of Panamá Pacífico, staying in spots like Albrook or Balboa, which are closer to the western edge of the city, would suit you best.
Where to Stay for Business Travelers and Urban Comfort
Panama City is a rising hub for international business in Central America, and if you’re visiting for work or simply enjoy the energy of a cosmopolitan city, Obarrio is your ideal base.
Obarrio is the city’s financial center, offering excellent infrastructure, walkability, and high-end dining options. Hotels like Marinn Place dominate the skyline and cater specifically to business travelers with large meeting rooms, fitness centers, pools, and top-tier service. Global Hotel Panama is another excellent option that offers modern comforts with fantastic views and on-site amenities, which include one of the city’s best rooftop bars.
Nearby El Cangrejo is another solid choice — slightly more relaxed, but still central. It has a youthful vibe, modern apartments, and some of the city’s best food spots along Via Argentina. If you’re after affordability without sacrificing comfort, The Ramada is always a great choice, and the Hotel San Felipe has a boutique feel.
For a quieter but still central location, consider San Francisco, a residential area with newer buildings and less noise. Hilton Garden Inn Panama is conveniently located here, with quick road access to both business hubs and the coast.
Best Place To Stay For Culture: El Cangrejo
El Cangrejo doesn’t have the history of Casco Viejo nor the glitz of Punta Paitilla, but it still gets the mix right between everyday Panama life and traveler-friendly convenience. You can think of it as the city’s artsy, lived-in middle ground neighborhood, full of personality, dining options, and a more residential vibe.
El Cangrejo is also very accessible with a metro station nearby, and several bus routes going through it, making it a sensible choice for someone who wishes to have access to all parts of the city.
For Luxury Travelers: Punta Paitilla
Punta Paitilla is the area of Panama City that embraces its gentlest luxury side. Located on a tiny peninsula extending into the Pacific Ocean, this neighborhood offers a perfect combination of breathtaking ocean views, high-rise buildings, and a serene atmosphere that is more exclusive compared to busier areas like Obarrio or El Cangrejo. It’s like a small gated community of hi-tech living, usually preferred by diplomats, long-term expats, and travelers who want a luxury experience.
In addition to being a luxury hotspot in Panama City, Punta Paitilla is also in a strategic position- it’s near shopping centers like Multicentro, and it is only a short drive away from the Cinta Costera walking trail.
As for hotels, the Plaza Paitilla Inn Hotel is a budget-friendly option in the heart of the neighborhood, with a rooftop pool and stunning panoramic views. On the other hand, for those who want to have a more luxurious experience, Dreams Delight Playa Bonita Panama is an all-inclusive resort that is located a little further west. In case you are looking for an upscale apartment atmosphere, the options of Marbella Apartments or Yoo Panama are some of the best options in the area.
Cinta Costera: For A Little Bit Of Everything
If blending culture, modernity, and nature is on your mind, Cinta Costera can’t be missed. It is the beautiful coastal belt that winds its way along the Pacific. It is the most loved place among locals because of its walkable paths, cycling lanes, outdoor gyms, sports courts, and some of the best sunset views in Panama City. The place is the link between Casco Viejo and Punta Paitilla, so you are close to all the historical places of Casco Viejo, the good food and nightlife of Obarrio, and the business centers to the north. This place is perfect for families, couples, and solo travelers who like being active or staying close to the water.
Some of the best options in the area include Hilton Panama, located directly on the waterfront, featuring sea-view rooms, a rooftop pool, and an on-site casino. Another great choice is InterContinental Miramar Panama– it offers business-class amenities and coastal comfort, and last but not least, Hotel Ojos del Rio is a simple, well-rated hotel located just a short walk inland.
The major difference between Cinta Costera and other beaches is its central location and laid-back atmosphere at the same time. It is never really far from the happening spots; however, there is still a place to breathe, have a walk, and relax. But if you are looking for more places close to the beach, check out the next section:
Where To Stay Near the Beach
Compared to other coastal capitals, Panama City is hardly the place you go for a beachfront stay, although you still have the opportunity to catch some beach vibes without being so far from the action. If you want to get the feeling of the beach without actually leaving the city completely, the best thing to do is to go to Playa Veracruz or Playa Bonita.
One of the most luxurious and convenient places to stay is undoubtedly The Westin Playa Bonita Panama. It is located just 20 minutes away from the city center and offers direct beach access, ocean-view rooms, several pools, and a peaceful environment. The other beach favorite resort is Dreams Playa Bonita Panama, a high-end resort with its own spa center, one of the finest restaurants in town, and a lot of nature walk options in the area.
And if you’re on a budget, Playa Veracruz is aimed at creating a niche market of people who want a beach experience that won’t break their wallet. Even though the water is not that clear or beautiful compared to Panama’s Caribbean or Pacific islands, it makes up for that in its unique local flair.
Quirky & Unusual Spots To Stay In Panama City
Lastly, we conclude this guide to the best place to stay in Panama City with a few quirky and unusual suggestions…
Firstly, Tantalo Hotel in Casco Viejo is a spot where the art of funkiness meets the world of comfort indeed. Each room in this hotel was generated by a different Panamanian artist, whereas the rooftop regularly hosts vibrant artsy events, providing a combination of art, nightlife, and a boutique hotel experience all in one building.
In the same area, you’ll also find Villa Palma Boutique Hotel, a courtyard restaurant that looks quite Mediterranean in decor, featuring vintage charm with warm colors and beautiful details, one can easily feel like they have entered a different world.
Looking for something even more unconventional? The Nomada Container Hotel in the heart of the city is a completely sustainable hotel constructed from recycled containers. I know that sounds rough, but not only is the hotel stylish and comfortable, but it’s also fully equipped with modern tech.
Last but not least, Canova Hotel Boutique gives you the unique opportunity to stay in a restored colonial building with antique details and retro interior, almost like staying in a time capsule.
How did you like this guide to the best place to stay in Panama City? Did you ever stay in any of the places discussed in our guide? Feel free to share your thoughts in the comments below.
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