Where to stay in Panama City: the 3 neighborhoods to know in 2026
A capital of skyscrapers set opposite a three-hundred-year-old colonial quarter, and a canal crossing the country just behind: Panama City is three worlds that look nothing alike and sit twenty minutes apart by taxi.
So the choice is simple: the Casco Viejo for old stones and the best restaurants, the banking district for everyday life and the metro, the waterfront towers for international comfort. Expect $79 to $181* a night, or under $23* in a hostel.
I was totally blown away by the Miraflores Locks. You have to go at the right time, otherwise you will not see anything, because the ships have a specific direction and schedule.
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At a glance: our picks by traveller type
Pick the profile that suits you to head straight to the recommended neighborhood.
The neighborhood map in Panama City
Get your bearings on the neighborhoods and must-see sights before choosing where to drop your bags. Click a name to jump to its description.
Casco Viejo The old town, on its peninsula
for a first visit and evenings out
Built on a peninsula after the original city was destroyed, Casco Viejo lines up churches, shaded squares, and restored facades with the modern skyscraper skyline framing almost every shot. This is where you will find the most upscale hotels, rooftop bars, and a heavy concentration of restaurants. The downside: the neighbourhood is in the middle of a transformation, with some streets still run-down a block away from the finest ones, and rates here are the highest in the city.
On one hand, you can stroll through its colonial neighborhood, Casco Viejo. It is beautifully restored, and that is where you will find the most elegant shops, restaurants, and hotels.
What to see & do in the neighborhood
Where to stay in this neighborhood
Sofitel Legend Casco Viejo Luxury
Former convent turned luxury hotel at the tip of the peninsula, overlooking the bay and the skyscrapers.
Tántalo Hotel Mid-range
Small boutique hotel featuring a popular rooftop terrace right in the heart of the colonial district.
Luna's Castle Hostel Budget
Hostel set in a historic home, an institution among long-haul travellers. The lowest rate in the guide.
Pros
- Top dining spots and rooftop bars
- Museums and walkable squares
Cons
- Streets still showing decay in spots
- The highest prices in town
El Cangrejo and the banking district The lively centre, around Vía España
for everyday life and the metro
Tucked between office towers and Vía España, El Cangrejo is where locals actually live, with canteens, supermarkets, locals' cafés and a metro station that connects you to the rest of the city. The Metropolitan Natural Park, a patch of tropical rainforest right in the middle of town, is just minutes away. Hotels here are more plentiful and cheaper than down in Casco Viejo. On the flip side, the neighbourhood is not pretty and the pavements are uneven.
What to see & do in the neighborhood
Where to stay in this neighborhood
Hotel El Panamá Luxury
Large historic property with gardens and a pool on the neighbourhood's main avenue.
Torres de Alba Mid-range
Suites with kitchens, popular for multi-night stays. Steps from the metro.
Bodhi Hostel & Lounge Budget
Modern hostel with social areas, very well run and central.
Pros
- The metro and canteens at local prices
- Much cheaper than Casco Viejo
Cons
- No architectural character
- Uneven pavements and heavy traffic for pedestrians
Marbella and Punta Paitilla The waterfront towers
for international comfort and the views
This is the skyline you see from the Casco Viejo, a wall of high-rises lining the Cinta Costera, the promenade along the bay. Chain hotels here offer rooftop pools, spacious rooms, and views stretching out to the canal entrance. It is the go-to spot for business trips and comfortable layovers. You will need to take a taxi everywhere since the neighbourhood has no street life.
Where to stay in this neighborhood
Hotel Riu Plaza Panamá Luxury
Tower right on the waterfront with a rooftop pool and the widest bay views in town.
Megapolis Hotel Panamá Mid-range
A large, recent hotel with spacious rooms, practical for a business stay.
Decápolis Hotel Panamá City Mid-range
Comfortable hotel connected to a shopping centre, right off the Cinta Costera.
Pros
- Rooftop pools and bay views
- Massive air-conditioned malls
Cons
- No street life, taxis required
- Nothing of interest on foot
Our tips for booking the right place
- The locks operate on a schedule: Ships only transit the Miraflores locks in one direction at a time during specific hours, so showing up at the wrong moment means staring at an empty basin, as one of our members points out. Check the transit schedule the day before, which typically runs towards the Pacific in the mornings. The site is a thirty-minute taxi ride from the centre.
- The metro changes everything: One metro line cuts right through town from north to south, connecting the banking district to the edge of Casco Viejo. It runs fast and air-conditioned for just a few coins, beating the hassle of negotiating taxi fares on every ride. Staying near a station saves both time and transit costs.
- A rainforest right in the middle of town: Metropolitan Natural Park sits up in the hills and is easy to reach by public transit with free entry to the walking trails. One of our members suggests heading out early in the morning when the wildlife is active and the heat is still manageable. It is an easy way to experience the country's fauna without leaving the capital.
- Booking a room in the still-developing streets of Casco Viejo without checking the exact address is a gamble because renovations happen block by block, leaving neighbouring streets with vastly different vibes after dark.
- Picking a hotel near Tocumen Airport just for convenience is a mistake since it sits thirty kilometres from the centre, leaving you entirely cut off from the city.
- Planning to walk between the waterfront high-rises and Casco Viejo sounds doable, but while the four-kilometre promenade is pleasant at dawn, it turns exhausting under the midday sun.
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