Where to Stay in Panama City, Panama: Best Areas and Hotels

Find the perfect place to stay in Panama City, Panama with this deep dive into the neighborhoods of Panama City and the best hotels in each.

When you’re planning where to stay in Panama City, Panama, get ready for a delightful range of options! This city is a vibrant mix of cultures and business, and it has all sorts of places to stay that match your style and budget.

Imagine sleek, tall hotels with amazing views of the skyline, or cozy little inns tucked into historic old neighborhoods – yep, you’ll find it all here. Whether you’re into the buzz of downtown or the peaceful vibes of the residential areas, picking where to bunk down adds an extra layer of fun to your adventure in this awesome Central American hotspot.

Let’s take a look at the five best areas to stay in Panama City and then dive into the best hotels in each so that you can find the perfect place to stay for your trip to Panama City, Panama.

Disclosure: Some of the links below may be affiliate links. At no additional cost to you, I may earn a small commission if you make a purchase.

Casco Viejo, The Old Town

Best Place to Stay for First Time Visitors to Panama City, Panama

If you are visiting Panama City, Panama for the first time, I highly recommend you stay in Casco Viejo, also known as the Old Town of Panama City, Panama. It’s the place to be. You’ll not only find most of the top things to do in Panama City nearby, but you’ll also have amazing restaurants and bars in every direction!

This historic neighborhood simply exudes charm and culture. Stepping into Casco Viejo is like taking a journey back in time, with its beautifully preserved colonial architecture, narrow cobblestone streets, and plentiful plazas. This UNESCO World Heritage Site is adorned with colorful buildings, adorned balconies, and ornate churches that tell the story of Panama’s past.

Here you’ll find an array of boutique hotels, trendy restaurants, lively bars, and art galleries. It’s such a great place to stay in Panama City, that when we switched hotels to another part of the city, we still found ourselves coming back again for more time in Casco Viejo.

But don’t just take my word for it. Read about the other areas and the pros and cons of each before deciding if Casco Viejo is for you!

Here are some pros and cons of staying in Casco Viejo, Panama City.

Pros of Staying in Casco Viejo

Considered one of the best places to stay in Panama City, Panama, Casco Viejo offers a lot of amazing reasons for you to stay there.

Rich History and Culture: Casco Viejo is filled with colonial architecture, narrow cobblestone streets, and historic landmarks. You’ll find beautiful churches, plazas, and museums that provide insight into Panama’s history and culture – something you won’t find in other areas of the city.

Lively Atmosphere: This neighborhood is lively, especially in the evenings. There are numerous restaurants, cafes, bars, and clubs where you can enjoy local cuisine, live music, and entertainment.

Walkability: Casco Viejo is relatively compact and pedestrian-friendly. You can explore the neighborhood on foot, allowing you to easily visit its many attractions, shops, and galleries. It’s a great place to wander around and discover hidden gems – no transportation needed!

Stunning Views: Casco Viejo is located on a peninsula, surrounded by the Pacific Ocean and Panama City’s modern skyline. Some hotels and rooftop bars offer breathtaking views of the ocean, city, and nearby Panama Canal entrance.

Proximity to Panama City: Casco Viejo is conveniently located close to downtown Panama City, making it easy to explore other parts of the city. You can visit modern shopping malls, financial districts, and other attractions within a short walk or Uber.

Cons of Staying in Casco Viejo

While you may find Casco Viejo to be a perfect match for where to stay in Panama, make sure you go in with your eyes wide open to some of the negatives of the area.

Noise and Crowds: Casco Viejo can get lively and crowded, particularly during weekends and evenings. This energetic atmosphere can also result in some noise, especially if your accommodation is near popular bars or nightlife spots.

Limited Amenities: While Casco Viejo has plenty of restaurants, cafes, and shops, but it may have fewer options compared to more modern areas of Panama City. You’ll need to venture out of the neighborhood for specific amenities, like larger supermarkets.

Parking Challenges: If you’re planning to rent a car or rely on private transportation, finding parking in Casco Viejo can be a challenge. The streets are narrow, and parking spaces are limited, so it’s advisable to check with your accommodation about parking arrangements in advance.

Preservation Efforts: While the historic preservation efforts in Casco Viejo are commendable, some buildings and areas might be undergoing renovation. This could lead to occasional construction noise and impact the ambiance.

Safety Concerns: While Casco Viejo has undergone significant revitalization efforts, it’s important to remain vigilant and take basic safety precautions. Like any tourist destination, it’s advisable to be aware of your surroundings, avoid isolated areas at night, and secure your belongings.

Best Casco Viejo Hotels in Panama City

Being the best part of Panama City to stay in, you’ll find plenty of accommodations to choose from in Casco Viejo. Here are my favorite picks.

Best Hostels in Casco Viejo

Magnolia Inn
Selina Casco Viejo Panama City: Best hostel in Panama City

Best Budget Hotels in Casco Viejo

Tantalo Hotel: Home of one of the best rooftop bars in Panama City
Villa Palma Boutique Hotel
Las Clementinas

Best Mid-Range Hotels in Casco Viejo

Best Luxury Hotels in Casco Viejo

View All Hotels in Casco Viejo

Marbella

Best Place for a Luxury Stay in Panama City, Panama

Marbella is a modern neighborhood offering a dynamic urban experience. It features sleek skyscrapers, upscale boutiques, and busy streets making it a popular destination for business travelers and urban dwellers.

This central location has easy access to the financial district and major commercial centers. Marbella also boasts an impressive array of fine dining establishments, trendy bars, and luxury hotels, catering to those seeking a cosmopolitan lifestyle.

With its contemporary architecture, well-manicured streets, and proximity to shopping centers like Multiplaza Pacific Mall, Marbella presents an upscale style that appeals to discerning travelers looking for a modern and convenient base in Panama City.

Here’s an overview of the pros and cons of staying in Marbella.

Pros of Staying in Marbella

Let’s take a look at why Marbella is an excellent option for Panama City hotels.

Central Location: Marbella is centrally located within the city, making it a convenient base for exploring. It offers easy access to popular areas, such as the financial district, shopping centers, and cultural attractions.

Modern Infrastructure: Marbella is known for its modern infrastructure, including well-maintained roads, modern buildings, and a range of amenities. You’ll find a variety of hotels, restaurants, cafes, and services within walking distance.

Dining and Entertainment Options: Marbella features a diverse array of restaurants, spanning from local diners to global gastronomy. Whether you want to experience authentic Panamanian fare or international cuisine, you’ll find plenty of choices at your fingertips. There are also bars, clubs, and lounges where you can enjoy the nightlife scene.

Shopping Opportunities: The neighborhood is near shopping centers, like Multiplaza Pacific Mall and Soho Mall, where you can find a wide range of international and local brands. These malls offer a diverse shopping experience, from high-end fashion to electronics and household goods.

Proximity to the Waterfront: Marbella is located close to the waterfront, offering scenic views and opportunities for walks or jogs along the shore. You can enjoy the fresh sea breeze and admire the city skyline while taking in the beautiful surroundings.

Cons of Staying in Marbella

Before choosing Marbella, it’s good to know why you might not want to choose a Panama City hotel in this part of town.

High-Density Area: Marbella is densely populated. Consequently, it can get quite crowded, especially during peak hours. You might encounter more significant traffic congestion here versus in more residential zones.

Noise Levels: Thanks to its prime location and lively energy, Marbella can be a bit loud, particularly in proximity to major thoroughfares or nightlife spots. You’ll want to choose lodging options that are away from the noise or ask you hotel for a quieter room.

Limited Green Spaces: Although Marbella provides easy access to waterfront spaces for outdoor activities, it might lack abundant green spaces or parks in its immediate surroundings.

Higher Cost: As a central and popular area, Marbella can be more expensive in terms of accommodation, dining, and shopping compared to other parts of Panama City. Be prepared for potentially higher prices, especially in upscale establishments or luxury hotels.

Lack of Cultural Immersion: Compared to historic neighborhoods, like Casco Viejo, Marbella offers a more modern and international experience. If you’re seeking a neighborhood with more traditional architecture or a stronger local cultural presence, you might prefer other areas of Panama City.

Best Marbella Hotels

Find the best accommodations in Marbella for all price ranges below.

Best Hostels in Marbella

Best Budget Hotels in Marbella

Best Mid-range Hotels in Marbella

Best Luxury Hotels in Marbella

View All Hotels in Marbella

Obarrio

Best Place to Stay in Panama City, Panama for Business Trips

The Obarrio neighborhood combines the energy of a commercial hub with the convenience of a central location. It’s best known for its towering office buildings and thriving business district that attracts professionals and entrepreneurs to the area.

Obarrio is dotted with banks, corporate offices, and professional services, making it an ideal destination for business travelers. It also offers a diverse range of dining options, from local eateries serving traditional Panamanian cuisine to international restaurants offering flavors from around the world.

With its modern infrastructure, easy access to transportation, and proximity to shopping centers like Multicentro Mall, Obarrio provides a cosmopolitan environment that caters to both business and leisure travelers seeking to experience Panama City.

Here’s an overview of the pros and cons of staying in Obarrio.

Pros of Staying in Obarrio

If Obarrio sounds like the place for you, let’s confirm it with these fabulous reasons to stay in this Panama City neighborhood.

Central Location: Obarrio is a centrally located neighborhood in Panama City, making it convenient for both business and leisure. It is close to the financial district, major commercial areas, and transportation hubs for easy navigation of the city.

Business and Commercial Hub: Obarrio is known for its business-oriented environment, with numerous corporate offices, banks, and professional services located in the area. If you’re visiting for business purposes or seeking a location close to commercial centers, Obarrio can be an ideal choice of where to stay in Panama City, Panama.

Shopping and Dining Options: Obarrio offers a wide range of dining and shopping options. You’ll find upscale restaurants, cafes, and international cuisine, as well as shopping centers like Multicentro Mall and Soho Mall, which offer a variety of retail stores, entertainment, and dining choices.

Modern Infrastructure: Obarrio is known for its modern infrastructure, with well-maintained roads, modern buildings, and a range of amenities. You’ll find a variety of hotels, including both luxury and budget options, along with convenience stores and services nearby.

Safety: Obarrio is generally considered a safe neighborhood in Panama City. It is well-patrolled, and its central location makes it a relatively secure area. However, as with any urban environment, it’s still advisable to take basic safety precautions and be aware of your surroundings.

Cons of Staying in Obarrio

While it’s a great place to stay, make sure you go in with eyes wide open before booking your Panama City hotel in Obarrio!

Lack of Cultural Immersion: Compared to historic neighborhoods like Casco Viejo, Obarrio may have a more modern and international ambiance. If you’re seeking a neighborhood with traditional architecture or a stronger local cultural presence, you may prefer other areas of Panama City.

Limited Green Spaces: Obarrio is primarily a commercial and business area, which means it has limited green spaces or parks for leisure activities.

Noise Levels: Obarrio is a busy neighborhood, particularly during business hours. It can be busy and noisy, with traffic congestion and the hustle and bustle of the commercial district. If you prefer a quieter environment, it’s advisable to choose a place to stay away from main roads or busy intersections.

Higher Cost: As a central and sought-after area, Obarrio can be relatively expensive in terms of accommodations, dining, and shopping. Be prepared for potentially higher prices, especially in upscale hotels or trendy restaurants.

Limited Tourist Attractions: While Obarrio offers convenience and proximity to other areas of Panama City, it may have fewer tourist attractions and historical landmarks compared to neighborhoods like Casco Viejo.

Best Obarrio Hotels

Looking for the best accommodations in Obarrio? We’ve got you covered, no matter your price range.

Best Hostels in Obarrio

Zebulo Hostel

Best Budget Hotels in Obarrio

Best Mid-range Hotels in Obarrio

Best Luxury Hotels in Obarrio

View All Hotels in Obarrio

Bella Vista

Best Place to Stay for Nightlife in Panama City, Panama (Outside of Casco Viejo)

Bella Vista, literally translated to “Nice View” is just down the coast from Casco Viejo and encompasses many prominent neighborhoods – including the popular Marbella and Obarrio. This lively neighborhood offers a mix of urban sophistication and local charm.

Known for its dining scene, entertainment options, and cultural attractions, Bella Vista is a go-to destination for locals and tourists alike. This area is also known for its thriving nightlife, with numerous clubs and venues that come alive after sunset.

With its central location and access to the beautiful Cinta Costera waterfront promenade, Bella Vista is a perfect place to stay in Panama City if you’re seeking a lively neighborhood with nightlife and dining options.

Here’s an overview of the pros and cons of staying in Bella Vista.

Pros of Staying in Bella Vista

Let’s take a closer look at why you might choose to stay in Bella Vista, Panama City.

Central Location: Bella Vista is a centrally located neighborhood, making it a convenient base for exploring Panama City. It is close to the financial district, major commercial areas, and popular tourist attractions. This makes it easy to access shopping centers, restaurants, and cultural sites within a short distance.

Dining and Entertainment Options: Bella Vista is known for its dining and entertainment scene. The neighborhood is home to a wide variety of restaurants, cafes, bars, and nightclubs, offering diverse culinary experiences and a lively nightlife. You’ll find a range of international cuisines, from local Panamanian dishes to international favorites.

Cultural and Artistic Hub: Bella Vista is renowned for its cultural and artistic offerings. It is home to several art galleries, theaters, and cultural centers where you can experience local and international art, music, and performances. The neighborhood often hosts cultural festivals and events, providing opportunities to immerse yourself in the local arts scene.

Outdoor Recreation: Bella Vista offers access to outdoor recreational areas. The nearby Cinta Costera waterfront promenade provides a scenic pathway for walking, jogging, or cycling along the coastline. You can enjoy panoramic views of the ocean, skyline, and the historic district of Casco Viejo.

Accommodation Options: Bella Vista offers a range of accommodation options, from luxury hotels to budget-friendly guesthouses and apartments. Whether you’re looking for upscale amenities or a more affordable stay, you can find suitable options in the neighborhood.

Cons of Staying in Bella Vista

Before booking your Panama City hotel in Bella Vista, take a look at some of the potential negatives of the area.

Noise Levels: Due to its central location and vibrant nightlife scene, Bella Vista can be noisy, particularly in areas near bars, clubs, or main roads. If you prefer a quieter environment, consider choosing accommodations away from busy streets or requesting a room facing away from the noise.

Traffic Congestion: Being centrally located, Bella Vista can experience heavy traffic congestion, especially during peak hours. This can affect travel times and make driving or using public transportation more challenging. Consider using alternative transportation methods like walking or taking taxis for shorter distances.

Limited Green Spaces: While Bella Vista offers access to the waterfront promenade, it has limited green spaces or parks within the immediate vicinity. If you’re looking for larger parks or more natural surroundings, you will need to venture outside the neighborhood.

Higher Cost: As a central and popular area, Bella Vista can be relatively expensive in terms of accommodations, dining, and entertainment compared to some other parts of Panama City. Prices may be higher, especially in upscale establishments or trendy restaurants.

Safety Concerns: While Bella Vista is generally considered safe for tourists, it’s still advisable to take basic safety precautions and be aware of your surroundings, especially at night or in crowded areas. Secure your belongings, use well-lit streets, and follow local safety guidelines.

Best Bella Vista Hotels

There are lots of amazing Panama City hotel options in the Bella Vista area, and they tend to be a bit less expensive than staying in Casco Viejo.

Best Hostels in Bella Vista

Best Budget Hotels in Bella Vista

Best Mid-range Hotels in Bella Vista

Best Luxury Hotels in Bella Vista

Intercontinental Miramar Panama, an IHG Hotel

View All Hotels in Bella Vista

Calidonia

Best Place to Stay in Panama City, Panama for Cheap Hotels

Situated between Casco Viejo and Bella Vista is Calidonia. This Panama City neighborhood offers a glimpse into the energetic heartbeat of the city. It’s best known for its lively street markets, local shops, and bustling streets. Calidonia provides an authentic Panamanian experience.

This commercial and residential area offers a solid mix of businesses and shops, where locals go about their daily activities. The neighborhood is a paradise for bargain hunters, with its street markets selling a wide range of goods, from clothing and accessories to fresh produce and local delicacies.

Calidonia embodies the essence of urban Panama, with its atmosphere, colorful street life, and melting pot of cultures. If you choose to stay in Calidonia, you can experience the dynamic nature of Panama City by interacting with friendly locals and immersing yourself in everyday activities.

Here’s an overview of the pros and cons of staying in Calidonia.

Pros of Staying in Calidonia

While Calidonia is not the first place anyone would recommend for a hotel in Panama City, Panama, it has a lot going for it and is perfect for those looking for something local and affordable.

Central Location: Calidonia is located in the center of Panama City, offering easy access to many popular attractions and amenities. It is close to the historic district of Casco Viejo, the financial district, and major transportation hubs. This central location makes it convenient for exploring the city and accessing various services.

Affordable Accommodation: Compared to some other central neighborhoods, Calidonia generally offers more affordable accommodation options, including budget hotels, guesthouses, and hostels. If you’re looking for budget-friendly options while still being centrally located, Calidonia can be a good choice.

Shopping Opportunities: Calidonia is known for its street markets and shopping scene. You’ll find a variety of local shops, boutiques, and market stalls selling everything from clothing and accessories to electronics and household items. This neighborhood is a great place to hunt for bargains and experience the local shopping culture.

Local Experience: Staying in Calidonia allows you to experience the daily life of Panamanians. The neighborhood has a more local, authentic vibe compared to some tourist-centric areas. You can immerse yourself in the local culture, interact with residents, and get a sense of the everyday rhythm of the city.

Accessibility to Public Transportation: Calidonia is well-served by public transportation options, including buses and the Panama Metro. This makes it convenient to explore other parts of the city and reach attractions further away without the need for a car.

Cons of Staying in Calidonia

Of course, there are reasons hotels in Calidonia are more affordable. Here are some negatives about the area.

Noise and Congestion: Calidonia is a busy neighborhood with busy streets and significant pedestrian and vehicle traffic. It can be noisy, especially during rush hours and peak times. If you prefer a quieter environment, consider choosing hotels away from main roads or requesting a room facing away from the noise.

Safety Considerations: While Calidonia is generally safe during the day, it’s important to exercise caution and be aware of your surroundings, especially at night. As with any urban area, it’s advisable to take common-sense safety precautions, secure your belongings, and avoid poorly lit or isolated areas.

Limited Green Spaces: Calidonia is primarily a commercial and residential area. This means it may have limited green spaces or parks nearby. If you’re looking for natural settings or larger green areas, you’ll need to venture out.

Limited Tourist Amenities: Compared to some other neighborhoods in Panama City, Calidonia may have fewer tourist-oriented amenities, such as upscale restaurants, souvenir shops, or international hotels. However, these amenities can be found nearby in Casco Viejo or Bella Vista.

Language Barrier: While you can encounter English speakers in tourist areas, Calidonia may have fewer English-speaking locals. Basic knowledge of Spanish or the use of translation tools can be beneficial for communication and navigating daily interactions.

Best Calidonia Hotels

Ready to experience local Panama? Check out these amazing hotels in Calidonia.

Best Hostels in Calidonia

Best Budget Hotels in Calidonia

View All Hotels in Calidonia

Explore More of Panama

So, there you have it – the scoop on where to stay in Panama City! With choices ranging from swanky skyscraper hotels to quaint little guesthouses, this city has something to fit everyone’s interests.

Whether you’re all about the downtown hustle or prefer the quiet corners of the residential districts, your stay in Panama City is bound to be a memorable part of your journey. So go ahead, pick your perfect Panama City hotel, soak in the city’s unique blend of modern and traditional vibes, and make the most of your time in this beautiful city.

Now that you have been able to book a hotel in Panama City, Panama, it’s time to plan more of your trip! Choose to visit rainforests, islands, beaches, and beyond in this magical country. Here are some posts to help get you started.

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Where to Stay in Panama City, Panama: Best Areas and Hotels