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Every major hotel chain seems to be opening doors in Panama City, Panama so how do you choose the best one?

I’ve come up an extremely narrowed down list of the best hostels and hotels in Panama City and divided them into three categories (budget hostels, mid-priced, and luxury) with four places to stay in each category. I also include where you can find short-term apartment rentals in Panama City.

It was extremely hard to narrow down this list, and I’ve based it on location, value, amenities, and originality. For the most part, I have tried to stay away from the big name sterile hotels to include places where you can have a unique and memorable experience in Panama City.

Here are my top picks of where to stay in Panama City no matter what your budget is. 


Budget Hostels

Magnolia Inn 

This is a luxury hostel and hotel located in the heart of Casco Viejo and it’s best for if you want an affordable and nice hostel to stay in Casco Viejo without a party atmosphere. Each bed even has its own plug and wall lamp!

Average Rating 8.9 | BOOK NOW


Luna’s Castle

Located at the entrance of Casco Viejo so you’re surrounded by Panama City’s top bars and restaurants, and you have the city’s coolest underground bar located downstairs. Also one of the most popular spots to stay for backpackers so it’s great spot to meet people.

Average Rating 8.3 | BOOK NOW


El Machico Hostel 

Located in the Marbella district in Panama City, El Machico Hostel boasts a swimming pool and free WiFi throughout the property. The rooms are equipped with a shared bathroom, air conditioning, hairdryer, cable TV, bed linens and Playstation.

Average Rating 8.9 | BOOK NOW


Los Mostros Hostel 

Offering an outdoor pool and a restaurant, Los Mostros Hostel is located in Panama City, right in the city center.

Average Rating 8.7 | BOOK NOW




Tantalo is one of the hippest boutique hotels in Casco Viejo with uniquely designed rooms and home to Panama City’s hottest rooftop bar.

Average Rating 8.6 | BOOK NOW


Hotel Casa Panama

The hotel is located in the historic Casco Viejo neighborhood and full of charm. During the day you’re steps away from exploring the historic Spanish colonial streets and alleys, then at night dine at some of Panama City’s best restaurants and party with locals.

Average Rating 7.9 | BOOK NOW


Riande Granada Urban Hotel

This funky hotel in Panama City offers a tropical swimming pool; a Biergarten stocked with craft beers, sundeck, and a unique style that will keep you looking around.

Average Rating 8.4 | BOOK NOW



Eurostars offers some incredible amenities for the price. At just $70/night you get a rooftop pool and a spa that features a Turkish bath, a hot tub, and a sauna. You are also located a block away from the Iglesia del Carmen metro station.

Average Rating 8.5 | BOOK NOW



American Trade Hotel

The American Trade Hotel is one of the most stylish places to stay in the historic Casco Viejo neighborhood of Panama City. Besides the eye-catching lobby and rooms, the hotel has an array of amenities to keep you entertained. Grab a premium cup of coffee at the attached Unido Cafe, enjoy fine dining at the lobby level restaurant, listen to an amazing jazz concert at Danilo’s Jazz Club, and take a dip in the rooftop pool after a hot day of exploring Casco Viejo.

Average Rating 9.0 | BOOK NOW


Isabela Suites 

La Isabela Suites offers full-service luxury apartments in the heart of historic Casco Viejo. Each space is uniquely designed and La Isabela combines the largest suites in the city with the services of a luxury boutique hotel. The onsite concierge can assist you with anything you need during your stay like spa services, touring the city, and even a private chef!

Average Rating 9.3 | BOOK NOW


JW Marriott

This is the most beautiful and luxurious swimming area in Panama City. There’s plenty of seating, an infinity pool with unobstructed views of the ocean (you really forget you’re in the middle of a city), and great cocktails & service. However, if your goal is to get tan during your trip you might be a little let down because the sun only hits the pool in the morning hours and then gets blocked by the surrounding buildings. Overall, if you’re looking for an urban oasis to unwind and relax, the swimming pool at JW Marriott will impress you.

Average Rating 8.7 | BOOK NOW



The Sortis is one of the newest hotels to open in Panama City and the pool area they have created is simply beautiful. It’s right in the middle of Panama City with 360-degree views of the city skyline. The location is also superb! You are just a few blocks away from the new luxury SOHO mall, calle 50, the Via Argentina metro stop, and several other key spots in Panama City.

Average Rating 8.6 | BOOK NOW

Short Term Apartment Rentals

Staying in an apartment in Panama City can bring some of the comforts of home like being able to cook your food and have access to a washer and dryer. You can book an apartment in Panama City using one of the following sites:


Airbnb lets hosts list their entire apartment or extra room to be available to rent daily. It’s a great way to have a more “local” stay in Panama, and if you opt for staying in someone’s extra room, you have a host that can give you some tips on what to do in the city. Get $25 off your first Airbnb stay when you sign up through THIS LINK.

Corporate Stays

Corporate Stays specializes in high-end apartments in Panama City and several other destinations around the world. They even have a concierge service to help out with all your needs during your stay. VISIT WEBSITE


Experience Panama


I'm Joey, a guy from Louisville, Kentucky that packed up and studied abroad in Panamá at the age of 20 and haven't moved back since. What started as a semester trip to Panamá has turned into 10+ years of living in Latin America and becoming a full-time travel blogger. I now rotate between living in Panama City, Bogotá, and Lima. Follow me on Instagram @joeybonura for more updates on my life abroad!

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