Where To Stay In Panama City: Best Areas & Hotels (2026)

When I visited Panama City, I was backpacking through Central America and stayed at Casa Areka because we arrived without booking anything and basically wanted the cheapest decent place we could find for the night.

But if you’re trying to decide where to stay in Panama City, the area matters just as much as the hotel itself. The city is spread out, and staying in Casco Viejo feels completely different from staying around El Cangrejo, Albrook or the Amador Causeway.

So in this guide, I’m breaking down the best areas to stay in Panama City first, followed by the hotels I’d actually consider at different budgets.

Best Hotels in Panama City: My Quick Picks

Category	My Pick
Where I Stayed	Casa Areka
Amador Causeway	MARINN Tropical Vibes Hotel
First-time visitors	La Concordia Boutique Hotel
Luxury stay	Sofitel Legend Casco Viejo

Best Areas to Stay in Panama City

Panama City is pretty spread out, so I’d choose the area before choosing the hotel.

Casco Viejo would be my first choice for a short trip. It’s the part of Panama City I enjoyed exploring the most, with the old streets, restaurants, bars and most of the atmosphere I actually associate with visiting the city.

El Cangrejo would be my alternative if Casco Viejo was too expensive. It’s more modern, has plenty of restaurants and hotels, and is a practical base for getting around without paying for the historic-center location.

Punta Paitilla and Punta Pacífica make more sense if you want the skyscrapers, modern hotels, shopping and city views. I stayed in this part of the city and it was completely fine, but personally I’d choose somewhere with a bit more character next time.

I’d only really choose Albrook if transport was the priority, especially if I was continuing around Panama by bus, while Amador Causeway would be more of a specific choice if I wanted somewhere quieter by the water.

For me, the decision would basically be:

Casco Viejo for atmosphere → El Cangrejo for value → Paitilla/Punta Pacífica for modern hotels → Albrook for transport.

Where I Stayed in Panama City

When I visited Panama City, I was backpacking through Central America, so my accommodation decision was basically based on one thing: how cheaply can we sleep here without staying somewhere awful?

We arrived without booking anything and ended up at Casa Areka, where I paid around 10€ for a dorm bed. At that point in the trip, that was exactly what I needed. I wasn’t looking for a fancy hotel, a rooftop pool or the perfect area of Panama City. I wanted somewhere cheap, decent and easy enough to use as a base while we explored the city.

Casa Areka is in Punta Paitilla, surrounded by the much more modern side of Panama City with all the skyscrapers. The location worked completely fine for the kind of trip I was doing, but if I went back now with a bigger accommodation budget, I’d probably choose Casco Viejo instead because that was the part of Panama City I enjoyed spending time in the most.

→ Read my full Casa Areka Hostel Review: What €10 Gets You in Panama City

Best Budget Hotel in Panama City

Hotel Milan Panama

Hotel Milan is the straightforward option if you want a cheap private hotel room without paying for a load of extras you don’t care about.

It’s in El Cangrejo, with plenty of restaurants and places to eat around the area, and has different room sizes depending on whether you’re traveling alone, as a couple or with more people.

This isn’t the hotel I’d book for fancy facilities or because I planned to spend half my trip inside it. I’d choose it because I wanted my own room, a useful location and a lower price.

Best for: Travelers who want a cheap private hotel room.

→ Check prices and availability at Hotel Milan Panama

Best 3-Star Hotels in Panama City

If you have a little more money to spend, these are the two 3-star hotels I’d narrow it down to.

MARINN Tropical Vibes Hotel

The main reason MARINN Tropical Vibes caught my attention is the location.

It’s on Isla Perico along the Amador Causeway, so you’re getting a completely different side of Panama City from staying among the skyscrapers or in Casco Viejo.

I’d consider this one if I wanted to stay around Amador and didn’t care about being right in the middle of the city. It wouldn’t automatically be my choice for a first trip where I wanted to spend most of my time exploring central Panama City, but that’s also exactly why it could be a good option for someone looking for somewhere different.

Best for: Travelers who want to stay around the Amador Causeway.

→ Check prices and availability at MARINN Tropical Vibes Hotel

Best Western El Dorado Panama Hotel

Best Western El Dorado would be my more conventional 3-star option.

If you don’t care about boutique hotels, hostel common areas or staying in Casco Viejo and just want a proper hotel with your own room and good facilities, this is the kind of place I’d look at.

There’s an outdoor pool and gym as well, so you’re getting a bit more than just somewhere to sleep without jumping into the prices of the 4 and 5-star hotels below.

Best for: Travelers who want a straightforward hotel with good facilities without spending too much.

→ Check prices and availability at Best Western El Dorado Panama Hotel

Best 4-Star Hotels in Panama City

These two are very different from each other, which is exactly why I’d keep both on the shortlist.

La Concordia Boutique Hotel

La Concordia would be my pick if I wanted a smaller boutique hotel rather than a huge international chain.

It’s in Casco Viejo and set inside a restored historic building, with suites rather than hundreds of rooms.

For me, the biggest selling point would be having a nicer hotel while also staying in an area I’d actually want to spend time exploring. If I went back to Panama City for a city break rather than another backpacking trip, this is one I’d seriously consider.

Best for: Couples and travelers who prefer smaller boutique hotels.

→ Check prices and availability at La Concordia Boutique Hotel

Marriott Panama Hotel – Albrook

The Marriott Panama Hotel would make sense to me for a completely different reason: its location at Albrook.

It’s connected to Albrook Mall and close to the main bus terminal, which can be really useful if Panama City is only one stop on a bigger trip around Panama.

We continued from Panama City toward Bocas del Toro, so I can definitely appreciate the advantage of staying somewhere that makes the transport side of the trip easier.

There’s also a rooftop pool, gym and restaurants at the hotel, so this is the option I’d choose if I wanted the facilities of a large 4-star hotel rather than a smaller boutique stay.

Best for: Travelers continuing elsewhere in Panama or anyone who prefers a larger full-service hotel.

→ Check prices and availability at Marriott Panama Hotel – Albrook

Best 5-Star Hotels in Panama City

If budget isn’t the deciding factor, these are the two 5-star hotels I’d look at — and again, I’d choose between them based on the kind of trip I was taking.

Sofitel Legend Casco Viejo, Panama City

If I had the budget for a proper luxury stay in Panama City, Sofitel Legend Casco Viejo would be my pick.

A big part of that is simply where it is. You’re right in Casco Viejo and on the waterfront, rather than staying at a luxury hotel further away from the part of the city I’d actually want to explore.

It has the things you’d expect at this price — pool, spa, restaurants and bars — but honestly, I’d expect a 5-star hotel to have great facilities. It’s the combination of the hotel and the Casco Viejo location that would make me spend the extra money here.

Best for: Travelers who want a 5-star hotel in Casco Viejo.

→ Check prices and availability at Sofitel Legend Casco Viejo

The Santa Maria, a Luxury Collection Hotel & Golf Resort, Panama City

The Santa Maria is the one I’d choose if staying at the hotel was actually part of the trip.

It’s a luxury resort built around an 18-hole golf course, with a large outdoor pool, spa and several places to eat.

Because of the location, this wouldn’t be my first choice if I wanted to spend all day walking around Casco Viejo and exploring central Panama City. But if I wanted a few days somewhere much more resort-like, planned to play golf or simply cared more about the hotel itself than being in the middle of the city, it makes much more sense.

It’s also relatively close to Tocumen International Airport, which could be useful depending on your plans.

Best for: Golf, resort facilities and travelers who don’t need to stay in central Panama City.

→ Check prices and availability at The Santa Maria

Where I’d Stay If I Went Back to Panama City

If I went back to Panama City now, I’d probably stay in Casco Viejo. It was the part of the city I enjoyed spending time in the most, and for a short trip I’d rather be based there than constantly taking Ubers back and forth.

If I was traveling on the same backpacking budget as my first trip, though, I’d probably make a completely different decision. I paid around 10€ for a dorm bed at Casa Areka, and sometimes when you’re traveling for months, having somewhere cheap and decent matters a lot more than staying in the “perfect” area.

That’s why I wouldn’t choose where to stay in Panama City based only on which hotel looks nicest. I’d decide on the area first, work out what I actually wanted to spend, and then choose from there.

Best Hotels in Panama City: Final Thoughts

I found Panama City really easy to get around, so I don’t think staying in the “perfect” area matters as much as it does in some cities.

I stayed in Punta Paitilla and had no problem exploring from there, but if I went back now, I’d still choose Casco Viejo simply because I enjoyed that part of the city the most.

There are enough accommodation options across Panama City that I’d focus on finding somewhere that fits my budget and feels like a good base rather than overthinking the hotel itself.