Where to Stay in Panama City, Panama: Our Top Picks by Area
When planning where to stay in Panama City, Panama, it’s best to decide on the activities and the vibe you want first, since each neighborhood has a totally different feel. We’ve stayed in Panama City several times, from a week in one of our favorite Airbnbs with water views to a few budget nights off the tourist path. We’ll share our top two picks in each area, plus the nearby all-inclusive beach resort we booked entirely with points.
This is not sponsored. We just love to share our experiences when they work out so well, so you can enjoy them too. Some links in this post are affiliate links, which means we may earn a small commission if you book through them, at no additional cost to you.
👉 Planning your Panama City itinerary? Check out our Perfect Panama City Itinerary for First-Time Visitors.
Where to Stay in Panama City, Panama, by Neighborhood
We’ve stayed in four areas of Panama City that we love, but each experience is different:
- Avenida Balboa is a waterfront strip of high-rises with skyline views and rooftop pools.
- Casco Viejo, the historic old town, has colonial plazas, boutique hotels, and rooftop bars.
- El Cangrejo is a lively local neighborhood with more affordable restaurants and hotels.
- Playa Bonita is a beach area across the canal, with several resort options.
You don’t need to stress too much about location, since Uber is easy and cheap in Panama City. Rides around town usually cost us $5 to $12. For example, the trip from our Airbnb on Avenida Balboa to Casco Viejo took about 10 minutes for $5.
Budget Tip: We paid about $150 a night at the Hilton Panama and Tántalo Hotel & Roofbar, and less at our Airbnb at Yoo Panama, but rates have gone up a lot. I recently saw the Hilton for $500 a night while Yoo Panama was a fraction of that, for what is arguably a better experience. Be sure to compare your options before booking.
Avenida Balboa: Best Area to Stay in Panama City for Views and Pools
Avenida Balboa is the part of Panama City that reminds us of Miami, with glass towers along the water and a waterfront path across the street where you can get your steps in. It’s our favorite area to stay in Panama City, and it’s close to everything. Our top two hotels here are the Hilton Panama and the Waldorf Astoria Panama, and our favorite apartment building is right next door to the Hilton.
Hilton Panama
We stayed at the Hilton Panama, and it’s our pick for a night or two. The lobby is gorgeous with views of the water, there’s a casino, and the lobby bar, Blue Bar, is a great spot for a burger. The hotel has several restaurants, so you don’t have to leave if you arrive late or just want a relaxing night.
The spa was our favorite part of the hotel. We booked a couples massage that came with spa access, bubbly, and a fruit and cheese platter, and we thoroughly enjoyed it. The pool was crowded when we were there, but it would be nice on a sunny day with fewer people. If you’re staying somewhere else or looking for things to do in Panama City on a long layover, you can buy a Hilton Panama pool day pass on ResortPass for $65.
Waldorf Astoria Panama
The Waldorf Astoria Panama was our other top pick on Avenida Balboa. It’s a little more refined than the Hilton and was surprisingly about the same price in cash or Hilton Honors points when we booked. We chose the Hilton instead because it seemed a little more fun, but both are great properties. Best for: Hilton Honors members who want a more refined stay for about the same price.
Best Apartment Rental in Panama City: Yoo Panama
Yoo Panama (Wanders & Yoo) is one of our favorite Airbnbs ever, and we’ve stayed in more than 70 apartments. We paid $1,000 for seven nights in a one-bedroom unit with water views, and we loved it so much that we booked my parents there for their next trip. The building has a pool, a gym, restaurants, and a high-end market called Foodie, and the poolside cabanas don’t cost extra.
Foodie is a pricey grocery store, but the quality is high and it’s right at the base of the building. We spent about $300 on groceries for the week, including wine, rum, fresh fruit, yogurt, salads, ramen, and snacks. We also had a $265 sushi dinner in the building with wine, dessert, and port, which was our biggest dinner bill of the week, but the sushi was super high quality.
Pro Tip: Our unit didn’t have a coffee maker, so we were glad we packed instant coffee. Ask your host before you go, or bring a few packets just in case.
Takeaway: Yoo Panama is right next door to the Hilton Panama, and they’re both great. If we’re spending a week, we stay at Yoo Panama. If it’s a night or two, we choose the Hilton.
Casco Viejo: Where to Stay in Panama City for History and Rooftop Bars
Casco Viejo is a colonial old town on a small peninsula with plazas, churches, shops, and plenty of rooftop bars. It’s the most walkable area of Panama City, and staying here means you can walk to dinner and drinks instead of taking an Uber back at night. Our two favorite hotels in Casco Viejo are Tántalo Hotel & Roofbar and Hotel La Compañía.
Tántalo Hotel & Roofbar
We stayed at Tántalo Hotel & Roofbar and paid about $150 a night. It’s a funky boutique hotel with a trendy vibe and a rooftop bar, and we liked being able to walk everywhere in the old town. We chose Tántalo over Hotel La Compañía because it cost less and we loved the trendy vibe.
Hotel La Compañía
Hotel La Compañía is a Hyatt luxury option in Casco Viejo, and it’s on our list for next time when we want some posh relaxation in the middle of the old town. It costs a lot more than the Hyatt Regency Panama City, so we’d look into a Hyatt points redemption before paying cash. Best for: Hyatt members who want a luxury stay within walking distance of the old town’s restaurants and bars.
Pro Tip: While you’re in Casco Viejo, try the fried chicken at Fonda Lo Que Hay and have an espresso martini at Sama Sky Lounge for the rooftop view.
El Cangrejo: Best Budget Area to Stay in Panama City
El Cangrejo is a lively local neighborhood with restaurants, bars, and more affordable hotels than the waterfront. It isn’t the first place most tourists would look to stay, but we had a blast in this neighborhood on our first trip to the city. Our two top picks here are Riande Urban Hotel & Biergarten and the Hyatt Regency Panama City.
Riande Urban Hotel & Biergarten
Riande Urban Hotel & Biergarten was our comfortable budget pick in Panama City when money was tight. We paid $75 a night after taxes, and the hotel has a nice pool, a gym, and basic but comfortable rooms in the middle of a bustling neighborhood. It’s perfect if you’re looking for something off the tourist path for a few nights. We chose Riande over the Hyatt Regency because it cost less. Best for: budget travelers who want a pool in an affordable, local neighborhood instead of a high-rise view.
Hyatt Regency Panama City
The Hyatt Regency Panama City was our other top pick in El Cangrejo. It’s an excellent Hyatt points redemption, and next time we’d use our points here.
Points Tip: Chase Ultimate Rewards points transfer to World of Hyatt, so you can book the Hyatt Regency Panama City, Hotel La Compañía, or Dreams Playa Bonita Panama (more on that below) with Chase points.
Roberto Durán at his bar in El Cangrejo
Playa Bonita: Best Beach Resorts Near Panama City, Panama
Playa Bonita is about an hour to 90 minutes from Tocumen Airport, depending on traffic. Just to set your expectations, Playa Bonita isn’t the greatest beach in the world and doesn’t have white sand. It’s still a lot of fun if you want to unwind at a resort on the first or last night of your trip. Our two top picks here are Dreams Playa Bonita Panama and The Westin Playa Bonita Panama.
Dreams Playa Bonita Panama
We booked two nights at Dreams Playa Bonita Panama with 40,000 Chase points transferred to Hyatt. That’s 20,000 points a night for two people, including all food and drinks. Tips are extra, of course, so bring some cash. We loved the pools and spa, and the food and service exceeded our expectations.
Luxe-for-Less Tip: It’s hard to beat 20,000 points a night for an all-inclusive stay for two. Dreams won out over the Westin because of this Hyatt redemption.
The Westin Playa Bonita Panama
The Westin Playa Bonita Panama is also on Playa Bonita and was our other top pick. If you have Marriott Bonvoy points, it’s a good alternative to Dreams. You can also get a Westin Playa Bonita day pass or a Dreams Playa Bonita day pass through ResortPass for $89 to $115, depending on the access you want.
Planning Tip: If you’re flying Copa, you can add a free Panama stopover when you book directly with the airline. We really enjoy a night or two at Playa Bonita at the start or end of our trips to Latin America. 👉 Read more in our Copa Airlines business class review.
Quick Picks: Where to Stay in Panama City, Panama
- Best for a night or two: Hilton Panama
- Best for a more refined stay: Waldorf Astoria Panama
- Best apartment for a week: Yoo Panama
- Best boutique hotel in Casco Viejo: Tántalo Hotel & Roofbar
- Best luxury stay in Casco Viejo: Hotel La Compañía
- Best budget hotel: Riande Urban Hotel & Biergarten
- Best points redemption in El Cangrejo: Hyatt Regency Panama City
- Best all-inclusive on points: Dreams Playa Bonita Panama
- Best beach resort for Marriott Bonvoy members: The Westin Playa Bonita Panama
📌 Exploring more of Central America? Check out our guide to every country: Best Central America Itinerary: All 7 Countries Ranked for First-Timers
Where to Stay in Panama City, Panama: FAQs
What Is the Best Area to Stay in Panama City, Panama?
Avenida Balboa is our favorite area to stay in Panama City for the views, pools, and waterfront. Casco Viejo is best if you want to explore the history and walk to restaurants and rooftop bars, and El Cangrejo is the most affordable and local. Uber is cheap, so you can easily visit the other areas from wherever you stay.
Is Airbnb a Good Option in Panama City?
Yes. Our week at Yoo Panama was one of our favorite Airbnb stays ever, with a pool, gym, restaurants, and a market in the building for $1,000 for seven nights. For a week, we prefer an apartment like this.
Where Should I Stay in Panama City for a Short Trip?
For a night or two, we’d book the Hilton Panama on Avenida Balboa. It’s 15 to 30 minutes from Tocumen Airport, and the spa, lobby bar, and restaurants make it easy to relax without needing to plan too much.
Are There Beach Resorts Near Panama City, Panama?
Yes. Dreams Playa Bonita Panama and The Westin Playa Bonita Panama are about an hour to 90 minutes from the airport. The beach isn’t white sand, but the resorts are a fun way to start or end a trip, and both offer day passes through ResortPass.
Do You Need a Car in Panama City?
No. Uber is widely available in Panama City, and rides around town usually cost $5 to $12. We use Uber for everything, including the airport and the Panama Canal.
Where did you stay in Panama City? Tell us your favorite neighborhood in the comments.