Where to Stay in Panama City: a Neighborhood Guide

As the meeting point of Central and South America, Panama City has cosmopolitan neighborhoods offering a mix of tourist destinations and local flavor. Here’s a guide to describe three of the central neighborhoods that make a perfect base for city exploration.

Casco Viejo

History and nightlife in the Old Town

Casco Viejo, or Casco Antiguo (the old town) is a must-visit when visiting Panama City. Full of history and stunning old architecture, it’s also a hotspot for trendy restaurants and popular nightlife.

Skyscrapers in the background of Casco Viejo’s colonial buildings.

The waterfront spaces offer beautiful views of the skyline in the modern part of the city, while removed from the city center. It’s also close to many attractions including the Panama Canal’s Miraflores Locks, Parque Soberania, Amador Causeway, and Cerro Ancon.

Tourism is rapidly driving the area more upscale, but venture up to Avenida Central and you with find a completely different experience with local shopping, cheap eateries for local food, and markets to buy fresh ingredients for cooking.

Where to stay

Accommodations here are in original buildings with different levels of renovation, so enjoy the character at the expense of less space.

  • $ Selina Casco Viejo is a social hostel with rooftop bar while Casa Magnolia Inn offers both dorms and private rooms for a quieter stay.
  • $$ Central Hotel features classically-decorated rooms in a quiet square next to the Panama Canal Museum. There are many nice vacation rental stays at this price point, so check out Airbnb.
  • $$$ American Trade Hotel is the standard upscale hotel in the area, but the new Sofitel Leyenda hotel offers an infinity pool and ocean view rooms

Where to eat

  • Cafe Coca Cola on the border of Casco claims to be the oldest in Panama City! Enjoy typical plates and watch the locals hang out.
  • Tantalo for the eco-chic decor and rooftop bar
  • Mercado de Mariscos, the nearby seafood market where fishermen sell the catch of the day and touristic restaurants fight for your business. If you eat here, see if you can negotiate with promoters for complimentary items like ceviche and beers.

El Cangrejo & Obarrio

Restaurants, bars, shopping and casinos in the city center

The El Cangrejo and Obarrio districts occupy the commercial center of the city. The main thoroughfare is Vía España starting at the Iglesia del Nuestra Señora del Carmen.

Hotels are modern and affordable plus there’s some of the best food in the city, making this a great base to stay comfortably and be connected to everything with the nearby Iglesia del Carmen or Vía Argentina metro stops.

Where to stay

Where to eat

Punta Paitilla & Marbella

Luxurious views and entertainment on the waterfront

The impressive Panama City skyline is comprised of a few upscale neighborhoods such as Marbella and Punta Paitilla, bordered by Obarrio and Punta Pacifica. The natural attraction here is the Malecón de Panamá waterfront, popular for walking, biking and enjoying views of the Panama Bay. If you’re into rooftop pools, find a hotel here – you won’t get better views.

This area is home to the city’s name brand hotels, as well as banking center, foreign embassies, bars and nightclubs. When the business crowd leaves for the day, people come to the main thoroughfares here, Calle 50 and Calle Uruguay, to visit the popular bars, international restaurant chains, and luxury malls.

Where to stay

  • $ Nomada for a unique stay in a container home, right in the middle of the city.
  • $$ Le Meridien is funky and modern, offering unique view rooms plus a spa.
  • $$$ Hilton Panama or JW Marriott in Punta Pacifica provides direct water views, with modern rooms and luxurious amenities.

Where to eat

  • Concolon for casual Panamanian food and fun cocktails. Try the pork belly.
  • Azahar Panama is a swanky sushi bar with a large menu of global plates
  • Amara serves coffee, sweets, and snacks in a cute cafe setting.

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