Where to stay in Panama: best 3 areas & what places to avoid

Choosing where to stay in Panama city, Panama, required long research. Due to the fact that it’s a Latin American city, we were looking for accommodation in a safe area, where we could go out and have dinner or walk around at night safely.

This city has very different neighborhoods, from historical areas to modern skyscrapers; and visitors come for various reasons as well, from business to tourism. Hence, the best area to stay in Panama may be different for each person.

Accommodation prices can also vary depending on the area. A higher price does not always equal better facilities or a better quality of service, so hotels should be analyzed carefully.

Many people say that the best neighborhoods to stay in Panama City are 8 or 9, but we felt overwhelmed by such a number of places to choose from.

I’d recommend that, when looking for the best hotel in the right area, you focus on fewer places. Now that we know our way around the city, I think there’re 3 best areas to stay in Panama City Panama for the first time (plus an extra one I’ll mention later).

After visiting the city, we wrote this article on the best places to stay in Panama so that you get a rough idea of the things each area has in store, and choose the one that better suits your tastes and needs.

As for our visit, we chose an excellent area, though we wouldn’t go back to the same hotel (we’ll go over the reasons later, so you don’t have to go through the same experience!).

And now, let’s get into the best areas where to stay in Panama and neighborhoods to be avoided!

How to get to your hotel in Panama?

Means of transport to go from the airport to the hotel will depend on your chosen area to stay in Panama City.

In summary, the options are:

➤ Public transport, combining at least two, which is economical but very slow-paced and even uncomfortable if it’s peak hours or you’re carrying large suitcases.

➤ Private transport that waits for you on arrival, holding a sign with your name on it. You’ll be taken directly to the hotel (this option is advisable if there’re several people traveling, if you’re traveling with children or elderly people or carrying big luggage. Also, it’s the only option I’d choose if I were to arrive at night) ➥ Book it here!

Where to stay in Panama City Panama: 3 best areas

Each neighborhood has its pros and cons, and although there’re many places to stay in Panama City Panama, I’ll mention my top 3 neighborhoods, based on our experience.

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1. Casco Viejo (Historic District)

Also known as Centro Histórico, the Historic District is one of the best areas to stay in Panama.

Not only it is a safe place to get around, but you’ll also be surrounded by small brick-paved streets and colorful colonial houses, reason why it was designated as Unesco World Heritage Site in 1997.

Moreover, there’s a variety of bars and restaurants to have dinner, many of which have terraces and rooftops with city views.

This is a very picturesque area, and it was our first option when looking for accommodation in Panama City. In the end, we gave it up because our flight arrived late and we were taking the metro to go from the airport to the city center, and as we were told, the station near Casco Viejo isn’t safe at night. Besides, as we took our time to book a hotel, there were only expensive options left. If you choose this area, book in advance!

The best area to stay in the center of Panama City goes from Paseo de las Bóvedas up to Parroquia de la Merced (Our Lady of Mercy Church). This is a beautiful place, as it has been restored.

Also, you should consider that Casco Viejo is located next to one of the most dangerous neighborhoods in Panama, El Chorrillo, so it’s not advisable to look for hotels too far.

We had seen hotels near the pedestrian street, like Hotel Doral or Hotel República, but we didn’t book there eventually. They’re more economical and, logistically speaking, on a really convenient location; but we didn’t like that area when visiting the city, especially when it gets dark and stores get closed.

In Casco Viejo, we saw policemen around all the time and on every street corner, so we believe it’s a safe area. Most attractions are located in this part of the city, so if you’re traveling as tourists, it’s a great place to stay in Panama City.

Moreover, Casco Viejo has the best nightlife, as it’s full of bars and rooftops with great city views where you can have a drink or a cold Balboa beer in the evening.

Whether you stay in Casco Viejo or not, it is a must-see in Panama.

💯 I’d advise you to take a free walking tour or a guided tour to get to know the area and learn very interesting details about the city. You also shouldn’t miss eating fish or ceviche in the famous Mercado de Mariscos (Seafood Market) – top thing to do in Panama!

Hotel recommendations in Casco Viejo

✔  Villa Palma ($$$) : a boutique hotel that offers, in addition to standard rooms, the chance to stay in two-floor duplex suites with balconies overlooking the bay or Casco Viejo. There also is a terrace with beautiful city views and a pool. Prices for double rooms start from USD 100.

✔ Central Hotel ($$$): in front of the main park and the Metropolitan Cathedral, this historical 5 star hotel has the best location in Casco Viejo. It is a large restyled colonial mansion that offers modern and comfortable rooms. It features a terrace with a pool and city views. From USD 150 per night.

✔ Magnolia Inn ($$): located behind Metropolitan Cathedral, this delightful colonial mansion is one of the best options to stay in Panama City if you count with a medium budget. It features standard rooms, larger rooms on the attic and you can even book a bed in a shared room. From USD 80.

✔ Selina Casco Viejo ($), a classic among young people visiting Panama. It has one of the most popular rooftops with a pool of the city. This option is perfect to meet people and has a young environment. The smallest private rooms go from USD 50, but you should book in advance because it might sell out quickly.

✔ Casa Panama ($)  in front of Plaza V Centenario, it features another popular rooftop in Casco Viejo, though you may find it noisy if you’re a light sleeper. From USD 60.

2. El Cangrejo, an excellent place to stay in Panama City Panama

The neighborhood El Cangrejo covers the surroundings of the metro stations Vía Argentina and Iglesia del Carmen, a great area to stay in Panama.

Although it isn’t as beautiful as Casco Viejo, these 3 features led us to booking accommodation there:

• it’s a safe area.
• it’s easily accessed from the airport by public transport.
• most hotels have late check out times, between 12 and 1 p.m., which allows you to enjoy your last day in the City.

If you’re looking for an area to stay in Panama City with an excellent quality/price relation, El Cangrejo might be the option for you.

As this area has more options for accommodation, if you check in advance you’ll find more competitive prices than in Casco Viejo. Private rooms at a hostel in Casco Viejo cost as much as rooms at 3-star and even 4-star hotels in El Cangrejo.

In the area of Vía Argentina, there’re plenty of restaurants and bars to have dinner, which I find very convenient, so you don’t have to walk around at night in an unfamiliar city.

You can walk down the quaint Av. Federico Boyd, running all the way from Iglesia del Carmen toward the coast. It’s a boulevard-like avenue, full of trees and greenery, and with transversal streets like Calle 49 Este. This street, in turn, has many bars as well, and it’s close to the neighborhood I’ll mention below.

Although we stayed within this area at Hotel Príncipe, I wouldn’t recommend it and I’ll explain why later. Nevertheless, this area turned out to be a really good option where to stay in Panama.

Hotel recommendations in El Cangrejo, Panama

✔ Tryp by Wyndham: 4-star hotel with modern, spacious and comfortable rooms with city views. From USD 60.

✔ Best Western Plus Panama Zen: 4-star hotel with comfortable and modern rooms. Its rooftop has a pool and astonishing views of the Business District. Within walking distance from Vía Argentina. From USD 60.

✔ The Executive: 4-star hotel with excellent reviews. Unlike most hotels in the area, breakfast is included. From USD 70.

✔ Novotel: modern 4-star hotel with good city views. From USD 60.

✔ Hotel Milan: economical 3-star hotel with classic rooms. From USD 40.

3. Bellavista and Marbella, staying in Panama in the Business District

Marbella/Bellavista is probably one of the most beautiful places to stay in Panama City, given its proximity to the coastline and its skyline. Although it’s close to the neighborhood I mentioned earlier, the good part is you’ll be closer to the beach.

If you’re planning to get around by public transport, you’ll need to take buses or walk a little up to the metro stations. You could also hire private transport, especially for the transfer from the airport.

Even though this area is known for its modern skyscrapers with banks and offices, there also are broad avenues, greenery and boulevards like Av. Federico Boyd or Av. Balboa. In addition, you’ll be a stone’s throw away from the promenade, which is beyond beautiful.

Parque Urracá is a green space located nearby as well, with several activities on weekends.

Av. Balboa and the promenade start out in Punta Paitilla area, where the popular Plaza Paitilla Inn is located, and runs all the way up to Casco Viejo, lining the bay. It certainly is one of Panama’s must-sees, either on foot or cycling.

Some of the best hotels in Panama (many of them international chains) are located in this part of the city.

Recommended Accommodation

✔ Riu Plaza: 5-star hotel with comfortable and spacious rooms. It features a pool with hot tub, and a remarkable breakfast is served every morning. From USD 100 per night.

✔ Hilton Panama: 5-star hotel on Av. Balboa, with modern and spacious rooms with astonishing views of the city or the sea. From USD 160.

✔ Intercontinental Miramar: 5-star hotel in front of the marina, with spacious rooms, many of them being seafront. It features one of the best pools in the area. From USD 140.

✔ Nomada Container: an economical hotel with innovative family and studio rooms in containers, on a very good location. From USD 45.

Extra: staying near the airport

It’s not advisable to stay near Panama Airport, as it’s located 24 km from the city center and attractions are nowhere near.

However, it might be a good alternative in certain cases:

• if your flight is to arrive late at night or departs early in the morning.
• if you simply have a long nighttime layover in the city and you want to sleep in a bed (and not on uncomfortable airport chairs) with no need to go up to the city center.

In these cases, there’re two good options to stay near the airport: Crowne Plaza Airport and Riande Hotel. Both offer free shuttle service from and to the airport every hour (in Crowne Hotel it’s offered every 30 minutes, but you should check it out after booking).

Our hotel in Panama

In Panama City, we stayed at Hotel Príncipe, in the center of El Cangrejo neighborhood, and 200 meters away from the metro station Vía Argentina.

We took our time to decide, but we chose this hotel for its good location, and also because check-out time is at 1 p.m., so we would get to enjoy our last morning in the city.

However, once we were there, our jaws dropped when they told us very calmly that the hotel was overbooked and there was no room for us. We were left on our own at 7 p.m. after an endless flight, without any consideration.

Regardless of the bitter pill and the argument at the desk, there was no availability in hotels in that area, as it was on a weekend.

While we were arguing at the desk, the same situation was going on with a couple coming from Bocas del Toro, to two women coming from the airport and to a group of friends.

Obviously, I don’t recommend it.

Is it safe to stay in Panama?

I talked about safety several times because, unfortunately, while traveling through Latin America you should be extra careful. In fact, we met several Panamanians in the city who advised us to be careful, especially at night.

Although the areas I mentioned are safe, you better avoid certain ones; for example, the outskirts of Casco Viejo, next to El Chorrillo, which is known to be a dangerous neighborhood. We were also told to watch out for that place between Casco Viejo y El Cangrejo.

If you choose any of the places to stay in Panama City Panama I mentioned in this article, you’ll be certain that you’re in a safe area and that you only need common sense (something you’ll need in any big city you visit).

Apart from that, I always advise traveling with travel insurance. You can find good prices, and it’s better to save a little money in accommodation or meals than in medical assistance (coming from someone who has needed it more than wished). We can offer a travel insurance with a 5% discount (it’s applied automatically when you click on the link).

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How long to stay in Panama?

In order to visit the must-sees, 2 or 3 nights should be enough. Anyway, the city is a good base for visiting other around destinations, such as the popular Contadora Island, San Blas Islands, Taboga island, Lake Gatun for sailing or go fishing.

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I hope this list of the best places to stay in Panama city Panama was useful to plan your trip. If you have any questions, let me know in the comments. Have fun!