Where To Stay in Panama City, Panama: An Insider’s Guide to Panama City Neighborhoods + Accommodations

Emerging from the shadow of nearby Cartagena, Colombia, and eco-friendly Costa Rica, Panama City, Panama, is finally coming into its own as a desirable travel destination in its own right. And it’s about time! With a revitalized historic center, great food and shopping, and plenty of things to see and do, Panama City is much more than just an entry point to the rest of the country.

There’s a growing buzz in the city around a few new luxury hotels that have transformed this into a destination for luxury travelers, namely Hotel La Compañía and Sofitel Legend Casco Viejo, but there’s something here for every budget. Read on to discover the best neighborhoods in town as you decide where to stay in Panama City, and find our handpicked recommendations for the best hotels, hostels, and resorts that will set your trip apart.

Best Places to Stay in Panama City, Panama

Our guide to where to stay in Panama City is brimming with information about the best neighborhoods in town for visitors, plus specific hotel and resort recommendations across the city – but perhaps you’re just looking for a few quick recommendations of the best of the best. These are our top recommendations for where to stay in Panama City ~

• Best Luxury Hotel in Panama City ($$$) | Sofitel Legend Casco Viejo
• Best Boutique Hotel in Panama City ($$) | Amarla Boutique Hotel
• Best Affordable Hotel in Panama City ($ – $$) | Selina Casco Viejo
• Best City Resort in Panama City ($$ – $$$) | JW Marriott Panama
• Best Hotel in Panama City for Business Travel ($$) | W Panama

Read on for more on each of these favorite spots, and plenty more. You’ll find travel expert-sourced and local recommendations at every price point for Panama City’s most vibrant neighborhoods and accommodations.

Panama City, Panama Neighborhoods

While it may not be an overwhelmingly massive metropolis, Panama City is quite large and spread out, meaning choosing the best neighborhood for your interests and your style of travel is important. These three Panama City neighborhoods are generally considered among those that have the most to offer for travelers.

• Casco Viejo | Casco Viejo is Panama City’s old historic heart, a recently revitalized neighborhood with more cool cafes, bars, restaurants, and hotels than ever. This is where to stay in Panama City to be at the heart of what’s new and exciting, within walking distance of historic monuments as well.
• Marbella | Marbella is where to stay in Panama City for great shopping, city views, and modern luxury. Its proximity to the financial district of the city has long made it a more upscale place to stay, though you’ll find hotels here for every budget.
• Obarrio | Immediately adjacent to Marbella, Obarrio is where to stay in Panama City for all the conveniences of the city for business and leisure travelers alike. Slightly further from the coastline, it’s more affordable than Marbella, but within walking distance.
• Costa del Este | Home to gated communities outside of the city center, Costa del Este is far from downtown Panama City. However, it’s home to more resort-style stays, making it an attractive option for many visitors.

Or, consider staying slightly outside of Panama City for even more unique stay experiences. The Westin Playa Bonita Panama is a lovely beachfront resort just a short drive from the city, while nearby Monkey Lodge Panama is immersed in the stunning Soberania National Park, yet just a 20-minute drive from the heart of the city.

Casco Viejo

After falling into disrepair and disregard for decades, Panama City’s Casco Viejo neighborhood – once its historic center and the former colonial capital – wasn’t a place you’d want to visit at night. However, Casco Viejo is now totally transformed and is hands down our top recommendation for travelers headed to Panama City.

After a few decades of urban renewal and revitalization, Panama City’s historic heart is the place to be for travelers, with the coolest cafes, bars, and restaurants accompanying new, design-minded hotels and hostels. Featuring historic churches, restored colonial mansions, and charming boutique hotels, there is so much to love about Casco Viejo. These are the best places to stay in the neighborhood.

Best Places to Stay in Casco Viejo

• Selina Casco Viejo | ($) Our top recommendation for the best affordable hotel in Panama City, the city’s Selina outpost is a fun, social hostel meets hotel meets coliving space with plenty to love for backpackers.
• Las Clementinas | ($$) A colorful, cool, personality-filled boutique hotel with studio-style and apartment-style rooms and a great restaurant.
• Sofitel Legend Casco Viejo | ($$$) Our top pick when it comes to the best luxury hotel in Panama City, this newly-opened property combines history and modern luxury for a divine experience.
• Hotel La Compañía | ($$$) Built around the ruins of a 16th-century convent, this luxury hotel feels supremely special. Opened just a few years ago, it quickly became the place to see and be seen in Panama City.

Marbella

Head north from Panama City’s Casco Viejo and you’ll quickly hit more modern parts of the city, including the neighborhood of Marbella, considered one of the city’s most affluent areas. This coastal neighborhood next to the dramatic Punta Pacifica is known for having some of the city’s best restaurants, shopping centers, and gleaming apartment buildings and highrises. It’s the best place to stay in Panama City for city views and modern luxury, hands down.

Marbella is an attractive choice for business travelers due to its proximity to the city’s financial and banking sectors, but it has plenty to do for those traveling for leisure as well. Plus, the area is just an easy 15-minute drive north of Casco Viejo if you’re looking to check out what’s new here.

Read on for our handpicked selection of the best places to stay in Marbella in Panama City.

Best Places to Stay in Marbella

• Machico Hostel | ($) An unassuming, simple hostel with a surprisingly social atmosphere and cool amenities like a large pool and indoor-outdoor communal spaces. A favorite outside of Casco Viejo.
• Le Meridien Panama | ($$) Excellent service, a superb location just steps from the water, and a price that can’t be beaten make this a great mid-range hotel in the neighborhood.
• W Panama | ($$) Our top pick for the best hotel in Panama City for business travelers, this surprisingly affordable property is colorful and cool enough to offset its buttoned-up location. The rooftop pool with city views and dining is a huge plus.

Obarrio

Just north of ritzier Marbella is slightly gritier and more affordable neighborhood of Obarrio, but don’t let comparison to its fancier coastal neighbor sway your opinion of this area too much! Obarrio is in the heart of downtown Panama City, the center of the business and financial district marked by highrises and towers, and is quite well-to-do.

Like the business districts in many major capital cities, the Obarrio area isn’t designed for beauty or glamor, but it is highly convenient. It’s a great place to stay if you’re looking for a no-frills experience, especially as a business traveler, with plenty of options for supermarkets, shopping on every budget, and an array of places to stay that will leave your head spinning.

• Global Hotel Panama | ($ – $$) An affordable mid-range hotel in the heart of the business district, offering a rooftop pool deck and clean, spacious rooms with great views.
• Sortis Hotel Spa & Casino | ($$) A large spa, one of the city’s best casinos, a palatial pool deck, and a variety of on-site dining options make this hotel a world within itself near the financial district. Recommended!

Costa del Este

Nestled along the shoreline north of Panama City, Costa del Este is the best place to stay near the city if you’re looking for a retreat-like feel without driving too far. Far from the rest of Panama City’s major monuments, Costa del Este is located directly adjacent to Panama Viejo, one of the country’s most important historical sites. These are the ruins of the original Panama City, which was sacked in a pirate attack – seriously! – by Henry Morgan in 1671.

For most travelers, we don’t recommend staying in Costa del Este unless you planning on sticking to the resort and enjoying the amenities and the spectacular ocean views. However, for many sun-and-sand-minded travelers, this is the dream; no need to drive hours after getting off your international flight to find it.

Live the dream in Costa del Este at these city resorts, which we highly recommend!

• The Santa Maria, a Luxury Collection Hotel & Golf Resort | ($$ – $$$) A golf-centric resort with great food and good views that will have you feeling miles away from the hustle and bustle of the city.
• The Westin Panama | ($$$) Our pick for the best resort-style stay in Panama City, the Westin is all about wellness. Sweeping views and great amenities make this well worth staying so far from city center.