Best Places to Stay in Panama City: Accommodations for Every Budget

The best places to stay in Panama City are Casco Viejo for charm (Las Clementinas, $80-150/night), El Cangrejo for business (Bristol Panama, $150-300), and the financial district for modern luxury (Waldorf Astoria, $200+). Mid-range hotels offer the best value for extended stays while scouting neighborhoods. Budget travelers can find hostels for $20-40/night. Here's the complete accommodation guide by budget.

Accommodation Options in Panama City

Panama City offers accommodations ranging from luxury international brands to budget hostels. The city has developed rapidly, and the hospitality infrastructure reflects that growth. Whether visiting briefly to scout the city or relocating permanently, you'll find options to suit your preferences and budget.

Luxury Hotels and Resorts

Best for: Those seeking premium accommodations and international-standard services.

• Hilton Panama - Modern luxury overlooking the city with excellent business amenities and a rooftop pool with skyline views
• Bristol Panama - Upscale boutique hotel in El Cangrejo neighborhood, five-star service with old-world elegance
• Intercontinental Playa Bonita Resort & Spa - Oceanfront luxury outside the city with comprehensive spa facilities, perfect for combining business with relaxation
• Waldorf Astoria Panama - Ultra-luxury option in the Trump Ocean Club tower with exceptional views
• Cost: $150-$300+ per night, though rates fluctuate seasonally

These properties cater to business travelers and tourists seeking consistent international standards. Service quality matches what you'd expect from these brands globally.

Mid-Range Hotels

Best for: Balance of comfort, location, and value.

• Central Hotel Panama - Good central location with reasonable rates and reliable service
• Azul Tree Panama - Boutique hotel with character, popular with repeat visitors
• Las Clementinas - Historic property beautifully restored in Casco Viejo, combining charm with modern amenities
• Global Hotel Panama - Business-oriented with good facilities in the financial district
• Cost: $80-$150 per night

This tier often provides the best value for extended stays while you're getting to know the city. The boutique options in Casco Viejo are particularly popular with expats exploring relocation.

Budget Hotels and Hostels

Best for: Budget travelers, backpackers, and digital nomads testing the waters.

• Selina - Co-working hostels with community vibe, excellent for digital nomads and younger travelers
• Luna's Castle - Popular hostel in Casco Viejo with rooftop bar and social atmosphere
• Magnolia Inn - Budget-friendly boutique option in Casco Viejo
• Various budget hotels - Throughout the city at $40-$80 per night
• Cost: $15-$80 per night depending on private room vs. dormitory

Neighborhood Recommendations

Location matters significantly in Panama City. Each neighborhood has distinct character and advantages:

Casco Viejo (Casco Antiguo)

Best for cultural immersion, walkable charm, and vibrant social scene. This UNESCO World Heritage site offers trendy restaurants, galleries, rooftop bars, and genuine character. Hotels range from $50 boutique options to $250+ luxury properties. The neighborhood is walkable and photogenic, though some streets remain under renovation. I always recommend that newcomers spend their first week here to experience the city's soul.

Panama Pacifico (Former Howard Air Force Base)

Modern planned community with international schools, shopping, and a self-contained lifestyle. Good for families and those wanting suburban feel with modern amenities. Hotels range $80-$200+ per night.

El Cangrejo

Central business district location with excellent restaurant scene and convenient access to everything. Popular with business travelers and long-term expats. Hotels range $60-$150 per night. This neighborhood has some of the city's best dining options within walking distance.

Amador Causeway

Modern, waterfront location with beautiful views of the Panama Canal entrance and city skyline. Good for nature lovers with easy access to hiking and the Biomuseo. Hotels range $100-$200+ per night. Slightly removed from the urban core, which can be an advantage or disadvantage depending on your priorities.

Costa del Este

Upscale residential area with modern apartments, popular with affluent Panamanians and expat families. Limited hotels but excellent for longer-term apartment rentals.

Apartment Rentals for Longer Stays

For those staying one month or longer, furnished apartment rentals often provide better value than hotels:

• Airbnb: Wide range of options from $600-$2,000+ monthly, good for testing neighborhoods
• Local agencies: Often offer better rates for longer terms and more professional arrangements
• Direct landlords: Best long-term deals through personal connections, common after you've been here a while
• Booking platforms: Vrbo, Booking.com monthly stays, and local sites like Encuentra24

I always recommend starting with a 1-3 month furnished rental before committing to anything longer-term. This gives you time to understand which neighborhood truly fits your lifestyle.

Practical Tips for Booking

• Book in advance during high season: December through April sees peak tourism
• Negotiate rates: For weekly or monthly stays, most properties will offer discounts
• Verify internet quality: Essential for remote workers, ask about speeds and reliability
• Check neighborhood safety: Research specific blocks, not just general areas
• Consider proximity to metro: Lines 1 and 2 connect major areas efficiently
• Try short-term rental first: Before committing to long-term lease or purchase

Best Neighborhoods by Purpose

Nightlife & Social: Casco Viejo, El Cangrejo

Family-friendly: Panama Pacifico, Costa del Este, Clayton

Business travelers: El Cangrejo, Obarrio, Marbella

Nature & hiking access: Clayton, Amador, Albrook

Budget-conscious: San Francisco, Bella Vista, local neighborhoods

Getting Around

The Panama City Metro (Lines 1 and 2) connects many key areas efficiently. Metro fares are just $0.35 per ride, among the cheapest in any major city. Choosing accommodation near a metro station significantly improves your mobility and reduces dependence on taxis or Uber.

The Bottom Line

Panama City offers accommodations for every budget and preference. Start with a shorter stay in a neighborhood that interests you, experience daily life there, and then make longer-term decisions. The city rewards exploration, and your ideal neighborhood may not be the one you initially expected.

Related Panama Accommodation Guides

• Panama City Guide
• Panama City Long-Term Housing
• Boquete, Panama - mountain alternative

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