Where to Stay in Panama City 2026 | Best Areas + Hotel Map
Panama City is where Latin America meets the modern world - a skyline rivaling Miami, a UNESCO-listed colonial quarter, and the engineering marvel of the Panama Canal. The city works as a hub for the Americas, with connections everywhere and a curious mix of old Spanish heritage and Trumpian towers. Two to three days covers the highlights before heading to beaches or rainforest.
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Editor's Pick for First-Timers
Casco Viejo
Panama's most atmospheric neighborhood with colonial buildings, rooftop bars with skyline views, and boutique hotels in restored mansions. Safe within the gentrified core (stick to main streets), walkable, and the best base for experiencing Panama beyond the canal. Book a rooftop dinner with city views.
Casco Viejo
City Center
Causeway
Costa del Este
Quick Guide: Best Areas
Things to Know
- • Casco Viejo borders rough neighborhoods - do NOT wander beyond the restored core, especially at night
- • El Chorrillo and Curundu neighborhoods are unsafe - avoid entirely
- • Taxi scams exist - use registered yellow taxis or Uber
- • Some areas around bus terminals feel sketchy - use direct transport
- • Traffic is horrendous - allow extra time for everything
Understanding Panama City Geography
Panama City hugs the Pacific coast at the canal's southern end. Casco Viejo peninsula juts into the bay. The modern city sprawls north and east with skyscrapers in the banking district. The Causeway extends into the bay toward the canal entrance. Miraflores Locks are 20 minutes northwest. The canal cuts through to the Caribbean side.
Neighborhood Overview
Explore different areas by price range. Click a neighborhood to learn more.
Accommodation Map
Check availability and prices across Booking.com, Vrbo, and more.
Best Neighborhoods in Panama City
Casco Viejo (Old Town)
Best for: Colonial architecture, rooftop bars, boutique hotels, UNESCO heritage
"Beautifully restored colonial quarter with vibrant nightlife"
Pros
- Most atmospheric
- Best nightlife
- Historic character
Cons
- Bordering rough areas
- Limited parking
- Can be touristy
Panama City Center / Obarrio
Best for: Business hotels, shopping, restaurants, urban convenience
"Modern Latin American metropolis with gleaming skyscrapers"
Pros
- Modern amenities
- Good restaurants
- Central location
Cons
- Traffic chaos
- Generic feel
- Hot sidewalk walking
Causeway (Calzada de Amador)
Best for: Canal views, waterfront dining, Biomuseo, sunset walks
"Island causeway with panoramic canal and city skyline views"
Pros
- Best canal views
- Biomuseo
- Waterfront dining
Cons
- Limited hotels
- Need transport
- Hot during day
Miraflores Locks Area
Best for: Panama Canal experience, lock viewing, visitor center
"Purpose-built visitor area at the famous canal locks"
Pros
- Ultimate canal experience
- Ship watching
- Museum
Cons
- Far from city
- Limited accommodation
- Day trip destination
Costa del Este
Best for: Modern living, ocean views, expat community, new development
"Miami-style planned community with modern high-rises"
Pros
- Modern facilities
- Safe area
- Ocean access
Cons
- Far from sights
- No character
- Car essential
Accommodation Budget in Panama City
Budget
Hostels, budget hotels, shared facilities
Mid-Range
3-star hotels, boutique stays, great locations
Luxury
5-star hotels, suites, premium amenities
💡 Prices vary by season. Book 2-3 months ahead for best rates.
Our Top Hotel Picks
$ Best Budget Hotels
Selina Casco Viejo Panama City
Casco Viejo
Trendy co-working hostel in restored colonial building with rooftop bar and social atmosphere. Digital nomad headquarters.
Hotel Milan
El Cangrejo
Reliable budget hotel in the popular El Cangrejo district, offering clean rooms, helpful staff, and close proximity to restaurants, bars, and shopping.
$$ Best Mid-Range Hotels
Tantalo Hotel - Kitchen - Roofbar
Casco Viejo
Art-filled boutique with famous rooftop bar and individually themed rooms. Casco's social scene anchor.
Novotel Panama City
City Centre
Contemporary hotel with comfortable rooms, rooftop pool, fitness center, and convenient location in the financial and business district.
$$$ Best Luxury Hotels
American Trade Hotel
Casco Viejo
Ace Hotel-affiliated property in restored 1917 building with jazz club, excellent restaurant, and sophisticated atmosphere.
Bristol Panama, a Registry Collection Hotel
City Center
Elegant boutique hotel with renowned restaurant and classic luxury. Panama City's most refined traditional option.
Waldorf Astoria Panama
Punta Pacífica
A sleek 36-story tower in the heart of the business district, featuring an award-winning spa, an outdoor pool deck, and elegant dining just steps from Avenida Balboa.
The Santa Maria, a Luxury Collection Hotel & Golf Resort, Panama City
Santa Maria
Golf resort hotel with championship course, spa, and exclusive atmosphere. Panama's premier resort property.
Sofitel Legend Casco Viejo, Panama City
Casco Viejo
Restored 1917 landmark hotel in the charming UNESCO historic district offering colonial elegance, ocean views, rooftop pool, and sophisticated service on the waterfront.
✦ Unique & Boutique Stays
Las Clementinas
Casco Viejo
Restored 1930s apartment building with spacious suites, vintage charm, and apartment-style living in the old quarter.
La Isabela Suites
Casco Viejo
Elegant boutique hotel in a beautifully restored historic building, featuring stylish suites, personalized service, and charming atmosphere in the UNESCO-listed Casco Viejo.
Smart Booking Tips for Panama City
- 1 Panama City works as 2-3 day stopover between North and South America
- 2 Dry season (December-April) is best; wet season afternoons bring heavy rain
- 3 USD is the official currency (called Balboa) - no exchange needed
- 4 Book San Blas island trips in advance if combining with city stay
- 5 Many hotels include airport transfer - always verify
- 6 Tocumen Airport is modern but 30-45 min from city center depending on traffic
Why you can trust this guide
35+ countries • 8 years analyzing travel data
Independent developer and travel data analyst based in Prague. 35+ countries visited across Europe and Asia, 8+ years analyzing flight routes, accommodation prices, and seasonal weather patterns.
- All neighborhoods verified by walking them
- Curated locations based on walkability & safety
- Real-time availability via live partner maps
- Prices based on Booking.com & Numbeo averages
Methodology: This guide combines on-the-ground neighborhood research, current hotel pricing data, and real traveler feedback to provide honest, actionable accommodation recommendations for Panama City.
Updated: February 25, 2026
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Overview
Complete travel guide for Panama City: top things to do, itineraries, and typical costs.