Where to Stay in Panama City: 6 Best Areas & Hotels For Every Traveller

Whether you are visiting Panama City for a few days to see the Panama Canal, spending a longer time exploring the city, or using it as a stopover before heading to Panama's islands and rainforests, choosing the right neighbourhood will help you make the most of your stay.

In this guide, I'll take you through the best areas to stay in Panama City, explain what each neighbourhood is like, and recommend hotels in each area to help you find the right hotel for your budget and travel style. If you also need help with planning what to do in Panama City, check out my Guide to The 18 Top Things to Do in Panama City.

Quick Answer: What Is the Best Area to Stay in Panama City?

If you're short on time, here's a quick overview of where you should base yourself in Panama City.

I personally think that Casco Viejo is the best area to stay in Panama City for most first-time visitors. Its historic streets, restaurants, cafés, museums and rooftop bars make it the most atmospheric part of the city, and you can explore most of the neighbourhood on foot.

However, Casco Viejo isn't necessarily the best choice for everyone. El Cangrejo is a great alternative if you want affordable accommodation, local restaurants and access to the metro, while Bella Vista and Marbella are convenient for modern hotels, shopping and exploring the wider city. San Francisco is worth considering if you prefer a more residential neighbourhood with excellent restaurants and access to green spaces.

Below you’ll see my three favourite hotels that I recommend checking out first. This is my personal favourite, and I highly recommend staying there if you want a relaxing, but practical stay in a charming area of Panama City.

Hotel La Compañía Casco Antiguo

This is one of the most distinctive luxury hotels in Panama City, set in a historic complex with architectural elements from different periods. The property combines heritage buildings with elegant guest rooms, several dining options and beautifully designed courtyards.

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Riu Plaza Panamá

This is a great choice for those who want a large, modern hotel with extensive facilities. The property offers contemporary rooms, restaurants, a swimming pool and fitness facilities, making it suitable for both short city breaks and longer visits.

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JW Marriott Panama

This is a nice luxury property in Punta Pacifica, known for its tall waterfront tower and views across the Pacific. The hotel offers spacious rooms and suites, multiple dining options, swimming facilities and other amenities suited to an upscale stay.

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Map of the Best Hotels in Panama City

Below you'll find a map where I've pinned my favourite hotels in Panama City to make it easier for you to navigate when you're looking for where you want to base yourself.

Want to make the most of your trip to Panama City?

Browse the highest-rated tours and experiences here.

Casco Viejo – Best Area to Stay in Panama City for First-Time Visitors

Casco Viejo is Panama City's historic quarter and the first place I would recommend considering when deciding where to stay in Panama City. This UNESCO World Heritage-listed neighbourhood is known for its colourful buildings, historic churches, cobblestone streets and beautifully restored colonial architecture. Walking around Casco Viejo is one of the highlights of visiting Panama City so if you stay here you’ll be smack down in the centre of most things you’d want to see.

Some of the buildings have been carefully restored into boutique hotels, restaurants and apartments, while others retain their weathered façades which gives the neighbourhood so much charm and character.

Casco Viejo is also one of the best places in Panama City for food and nightlife. You’ll find everything from traditional Panamanian restaurants and speciality coffee shops to cocktail bars, rooftop terraces and restaurants serving international cuisine. Plaza de la Independencia, Plaza Herrera and the waterfront promenade are all within walking distance of many hotels, making it easy to spend the day sightseeing before heading out for dinner.

Several important attractions are also located here, including the Panama Canal Museum, the Metropolitan Cathedral and the historic plazas. You can wander through the streets without needing to organise transport for every stop, which is a major advantage if you have limited time.

The only downsides to staying here is that accommodation can be more expensive than in other parts of the city, and the popular bars and restaurants can make some streets noisy at night, especially on weekends. However, I personally think that’s worth it to stay in Casco Viejo, especially if you’re only staying for a couple of nights.

Best Hotels in Casco Viejo

American Trade Hotel

This is an excellent choice if you want to stay in a historic building with plenty of character. Set in a restored early twentieth-century building on Plaza Herrera, the hotel combines period architecture with stylish interiors. Its nice restaurant and cozy courtyard add to the experience.

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Hotel La Compañía Casco Antiguo

This is one of the most distinctive luxury hotels in Panama City, set in a historic complex with architectural elements from different periods. The property combines heritage buildings with elegant guest rooms, several dining options and beautifully designed courtyards.

Check prices and availability

Las Clementinas

This is a lovely option if you prefer a more independent stay rather than a traditional full-service hotel. The property occupies a restored historic building and offers spacious suites, many of which include kitchen facilities, making it particularly convenient for longer visits or those who like having extra room.

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El Cangrejo – Best Area to Stay in Panama City on a Budget

El Cangrejo is one of the best neighbourhoods to stay in Panama City if you want to experience everyday city life without paying the price that some of the historic quarter's boutique hotels cost. This area has plenty of apartment buildings, cafés, restaurants, small shops and a very relaxed atmosphere.

One of the main attractions here is Vía Argentina, a cozy street lined with restaurants, cafés and some nice places to grab a drink in the evening. The surrounding streets also have plenty of options for breakfast, lunch and dinner so it’s a great place to stay if you enjoy discovering new restaurants and cafés rather than eating every meal in the main tourist areas.

Compared with Casco Viejo, El Cangrejo has less historic charm and fewer major attractions within walking distance. It feels more like a place where people live and work than a neighbourhood designed around sightseeing.

Best Hotels in El Cangrejo

Novotel Panama City

This is a reliable choice if you want modern accommodation with the familiar comforts of an international hotel brand. The hotel offers contemporary rooms, a restaurant, fitness facilities and practical amenities for both leisure and business travellers.

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Gran Evenia Panamá Hotel

This is worth considering if you want a more upscale hotel without choosing one of the luxury properties in Casco Viejo. The hotel offers contemporary facilities designed for those who appreciate having a pool, dining options and space to unwind after sightseeing.

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Hotel Milan Panama

This is a practical option for those who want to keep accommodation costs under control while staying in a central part of the city. Its straightforward rooms and convenient location make it suitable for those who plan to spend most of their time exploring Panama City rather than enjoying hotel facilities.

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Bella Vista and Marbella – Best for a Central Location

Bella Vista and Marbella are great areas to consider if you want to stay in the modern side of Panama City, with high-rise buildings, restaurants, shopping and easy access to the waterfront. These neighbourhoods sit between the historic centre and the more commercial parts of the city, so it’s a convenient base if you have longer in Panama city and want to explore different areas.

One of the advantages of staying here is that you have plenty of choice when it comes to accommodation. You can choose from various international hotel brands or serviced apartment if you’re looking to stay for a while.

The main drawback is that this part of the city feels more urban and less atmospheric than Casco Viejo. The wide roads, traffic and modern buildings dominate the landscape, and there is a bigger distance between attractions you’ll want to see.

Best Hotels in Bella Vista and Marbella

Riu Plaza Panamá

This is a great choice for those who want a large, modern hotel with extensive facilities. The property offers contemporary rooms, restaurants, a swimming pool and fitness facilities, making it suitable for both short city breaks and longer visits.

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Waldorf Astoria Panama

This is an upscale option for those looking for a luxury stay in the modern city centre. The hotel offers elegant rooms and suites, dining facilities, a spa and a pool, providing plenty of opportunities to relax between sightseeing excursions.

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Le Meridien Panama

This is a great option for those who want contemporary accommodation in a central waterfront location. The hotel combines modern guest rooms with dining and leisure facilities, and its position makes it convenient for exploring the Cinta Costera and the restaurants around the city centre.

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Obarrio – Best Area for Business Travellers and Modern Hotels

Obarrio is one of Panama City's main commercial and financial areas. It’s known for office towers, shopping centres, restaurants and modern hotels, making it particularly convenient for business travellers and those who prefer a polished, urban environment.

The neighbourhood has a different atmosphere from Casco Viejo. Instead of historic plazas and narrow streets, you will find wide avenues, office buildings and hotels designed around convenience and comfort. There are plenty of places to eat, from casual cafés to restaurants suited to business lunches and evening dinners, and shopping is easily accessible in the surrounding districts.

Accommodation in Obarrio ranges from business-oriented hotels to larger upscale properties. The area can be a good place to look for value, especially if you want modern facilities and a larger room without paying for a historic boutique hotel in the old town.

The downside is that Obarrio is not the most atmospheric area for a holiday. Some streets can feel quiet outside office hours, and the neighbourhood is better suited to travellers who prioritise convenience over historic character.

Best Hotels in Obarrio

Bristol Panama, a Registry Collection Hotel

This is an established luxury hotel that combines elegant accommodation with a location convenient for the financial district. Rooms and suites are designed for comfort, while the hotel also offers dining, wellness facilities and services suited to business and leisure travellers.

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Decapolis Hotel Panama City

This is a convenient option if you want a central hotel with a contemporary feel. The property offers comfortable rooms and facilities for those who want an uncomplicated base close to shopping and the city's commercial districts.

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Plaza Paitilla Inn

Although located in neighbouring Punta Paitilla rather than Obarrio itself, this is a useful alternative if you want to compare central hotels with waterfront views. The property offers spacious accommodation, a restaurant and views across Panama Bay from many of its rooms.

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San Francisco – Best for Restaurants and Local Neighbourhood Life

San Francisco is a residential neighbourhood that deserves some consideration if you want to experience a different side of Panama City. It has a mix of apartment buildings, local businesses, restaurants, cafés and green spaces, with a more everyday atmosphere than the historic quarter or the financial district.

One of the biggest reasons to stay in San Francisco is its food scene. The neighbourhood has a strong selection of restaurants, from casual places to more fancy dining spots, and it is a good area for those who enjoy discovering where locals go out to eat. There are also cafés and shops scattered throughout the area, so you can easily settle into a routine if you are staying for several days.

Parque Omar is one of the neighbourhood's main attractions. The park is popular with locals who come to walk, run, exercise and relax outdoors. If you like having access to green space during a city stay, staying near the park can be a real advantage, especially when you want a break from busy streets and sightseeing.

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Best Hotels in and Around San Francisco

Ramada Plaza by Wyndham Panama Punta Pacifica

This hotel is worth considering if you want modern accommodation with a good range of facilities in the wider San Francisco and Punta Pacifica area. It offers comfortable rooms, a swimming pool, dining facilities and services that suit both leisure travellers and business visitors.

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Courtyard by Marriott Panama Multiplaza Mall

This is a practical option if shopping and modern conveniences are high on your list. The hotel is positioned close to Multiplaza Pacific, one of Panama City's major shopping centres, making it easy to combine shopping, dining and sightseeing.

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The Westin Panama

This hotel is located in Costa del Este, a modern business and residential district farther east of central San Francisco. It is worth considering if you want upscale accommodation in a quieter, more contemporary part of the metropolitan area.

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Punta Pacifica and Punta Paitilla – Best for Luxury and Waterfront Views

Punta Pacifica and Punta Paitilla are neighbouring waterfront districts known for modern residential towers, high-end apartments, shopping and hotels with views across Panama Bay. These areas are worth considering if you prefer a more polished residential environment and want to stay somewhere that feels removed from the busiest tourist streets.

Punta Pacifica is particularly associated with high-rise buildings, upscale residences and modern commercial facilities. It’s close to major shopping areas and has a contemporary atmosphere, with wide roads and buildings designed around modern city living. It’s convenient for those who want a comfortable hotel and easy access to restaurants and shopping, although you will need transport to visit most of the city's historic attractions.

Punta Paitilla has a similar high-rise residential feel, with waterfront views and a quieter atmosphere in some of its streets. Depending on where you stay, you may be able to enjoy views of the bay and easy access to the coastal roads.

One important thing to understand is that neither area is a beach destination in the usual sense. Although they sit beside the water, the urban coastline is not where you would stay for swimming and a traditional tropical beach holiday. The appeal is the skyline, bay views, modern accommodation and convenient access to the city.

Ready to explore Panama City?

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Best Hotels in Punta Pacifica and Punta Paitilla

JW Marriott Panama

This is a nice luxury property in Punta Pacifica, known for its tall waterfront tower and views across the Pacific. The hotel offers spacious rooms and suites, multiple dining options, swimming facilities and other amenities suited to an upscale stay.

Check prices and availability

Residence Inn by Marriott Panama City

This is worth considering if you prefer apartment-style accommodation with extra space. It focuses on extended stays, with suite layouts and kitchen facilities that can make longer visits more comfortable than a standard hotel room. It is particularly appealing to those who want to prepare some of their own meals.

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Intercontinental Miramar Panama by IHG

This is a waterfront hotel in the wider Bella Vista and Avenida Balboa area, making it a great option if you want views of the bay and a full-service stay. The property offers guest rooms, restaurants, a pool and facilities for both business and leisure travellers.

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Which Area Should You Choose for Your Stay in Panama City?

If you are still unsure where to book your hotel in Panama City, think about your budget, how long you are staying and what you want to do during your visit.

For a short visit, I would prioritise location over hotel facilities. Panama City is spread out, and spending too much time travelling between your accommodation and the main sights can become frustrating when you only have a couple of days. For longer stays, a residential neighbourhood with good restaurants and public transport can be a better choice.

Here is how I would narrow down the options:

• For your first visit: Choose Casco Viejo if you want to explore the historic quarter, enjoy the restaurants and experience the city's atmosphere.
• For a budget-friendly stay: Choose El Cangrejo, where you can find practical hotels, cafés and restaurants and use the metro for some journeys.
• For a central modern hotel: Choose Bella Vista or Marbella for convenient access to the waterfront, shopping and the wider city.
• For business travel: Choose Obarrio for its concentration of offices, modern hotels and restaurants.
• For food and a residential atmosphere: Choose San Francisco, especially if you want to explore restaurants and spend time in Parque Omar.
• For luxury and waterfront views: Choose Punta Pacifica or Punta Paitilla if you want a more upscale hotel experience.

For most travellers visiting Panama City for the first time, I would start by looking at Casco Viejo. If prices are too high or you prefer a more modern neighbourhood, El Cangrejo and Bella Vista are excellent alternatives.

Is It Better to Stay in Casco Viejo or the Modern City Centre?

This is one of the biggest decisions when choosing where to stay in Panama City, because the historic quarter and modern centre offer quite different experiences.

Casco Viejo is the better choice if you want atmosphere, historic architecture, restaurants and nightlife within walking distance. You can spend the day exploring the old town, visit the Panama Canal Museum, stop for coffee and finish with dinner or drinks without needing to travel far. The main trade-offs are higher accommodation prices and potential noise from bars and restaurants.

The modern city centre, including Bella Vista, Marbella and Obarrio, is better if you prefer larger hotels, shopping, business facilities and access to the metro. You may find more options at different price points, and many hotels offer amenities such as pools, gyms and larger rooms. However, you will generally need transport to reach Casco Viejo and some of the city's main attractions.

If you have only two or three nights in Panama City, I would usually choose Casco Viejo. If you are staying for a week or longer, the modern districts can offer better value and a more practical base for exploring the city and taking day trips.

How Many Days Should You Stay in Panama City?

I recommend spending at least two or three nights in Panama City if you want to see the main highlights without rushing. This gives you time to explore Casco Viejo, visit the Panama Canal and discover some of the city's other attractions.

With two nights, you could spend one day exploring the historic quarter and another visiting the Miraflores Locks at the Panama Canal, with time for a few restaurants and a walk along the Cinta Costera.

With three or four nights, you can add attractions such as the Biomuseo on the Amador Causeway, a visit to Panama Viejo, or a walk up Ancon Hill for views over the city. You will also have more time to explore different neighbourhoods and enjoy Panama City's food scene.

If you plan to take day trips or use Panama City as a base before travelling elsewhere in the country, staying longer can make sense. However, you do not need to spend your entire Panama itinerary in the capital. Panama has beaches, islands, mountains and rainforest destinations that are worth exploring beyond the city.

If you want help planning how to spend your time in Panama City, check out Top Things to Do or my Itinerary for Panama City.

Is Panama City Safe for Tourists?

Panama City is a major capital with busy commercial districts, residential neighbourhoods and tourist areas, so it is worth taking the same sensible precautions you would in any large city. I personally never had any issues, but I’ve heard of people getting robbed at night, so use common sense and you should be fine.

In Casco Viejo, stick to the well-visited streets and established restaurant areas, particularly after dark. Avoid wandering into unfamiliar neighbouring areas simply because they appear close on a map, and use a taxi or Grab when travelling between neighbourhoods at night. Keep valuables secure, avoid displaying expensive electronics unnecessarily and ask your hotel for current local advice about areas to avoid.

And don't forget travel insurance! it's one of those things you hope you'll never need, but you'll be incredibly grateful to have if things doesn't go as planned. We personally use SafetyWing and I highly recommend them for every kind of trip.

When Is the Best Time to Visit Panama City?

Panama City has a tropical climate, with warm temperatures throughout the year and a very distinct wet and dry season. The dry season generally runs from December to April, and it’s the best period for exploring the city and taking trips to other parts of Panama.

The rainy season typically brings more frequent showers, often in the afternoon, although the weather can vary. You can still visit Panama City during these months, just know that you might have to add some flexibility to your itinerary. I visited during the season and there were a couple of beaches and boat trips I wanted to do, but couldn’t due to the weather, so plan accordingly.

Final Thoughts: Where Should You Stay in Panama City?

The best area to stay in Panama City depends on the kind of trip you want, but for most first-time visitors, Casco Viejo is the strongest starting point. Its historic streets, restaurants, rooftop bars and cultural attractions make it an enjoyable place to explore, and staying there allows you to experience a side of the capital that feels very different from its modern skyline.

If you prefer affordable accommodation and a more local atmosphere, El Cangrejo is a great alternative. Bella Vista and Marbella offer modern hotels and convenient access to the waterfront, while Obarrio is practical for business trips. San Francisco is worth considering if you want good restaurants and green spaces, and Punta Pacifica or Punta Paitilla suit travellers looking for luxury accommodation and bay views.

Plan Your Trip to Panama City

Hopefully this guide has given you everything you need to plan where to stay in Panama City. To make planning the rest of your trip even easier, I've included all the resources I personally use when I travel.

Find the best hotels and compare prices on Booking.com

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Book buses, trains and ferries with 12Go

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Every recommendation is based on tools and services I genuinely use and would recommend to friends and family.

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