Where to stay in Panama city Panama

Best Place to stay in Panama City, Panama

Wondering Where to stay in Panama City Panama for the first time, families, couples, backpackers? We’ll help you to find the best areas to stay in Panama City in this guide.

Panama City is the capital and largest city in the state of Panama and is located halfway between the Caribbean Sea and the Pacific Ocean

The city is lively with a rich architectural heritage, landmarks, culture, and history. This metropolis is a bridge between two worlds of North America and Latin America. In Panama City, the modern is intertwined with the historical, and this acts as a magnet for thousands of tourists each year. 

The emblem of the city is the huge skyscrapers and the beautiful parks around them. The American influence on urban culture is palpable and evident in all aspects of life in Panama City. 

Where to stay in Panama City, Panama – 5 Best Areas & Neighborhoods

The Panamanian capital is an economic and financial center with thousands of businesses from around the world. According to surveys from 2018 and 2019, Panama City is among the best places for business and register financial companies. 

Challenging is the most accurate word to describe the process of finding the best place for you. For your convenience, this guide presents 5 of the best areas where you can stay.

Where to stay in Panama City, Panama – 5 Best Areas & Neighborhoods to Stay in Panama City

  1. Panama City Center
  2. The Canal Area
  3. San Francisco
  4. Casco Viejo
  5. Obarrio

Where to stay in Panama City, Panama Map

Where to stay in Panama City, Panama Map
Where to stay in Panama City, Panama Map

To see more detail of the map best areas to stay in Panama City, go to Google Map.

1. Panama City Center 

where to stay in panama city center

Panama City Center is the heart of the metropolis and a place of the most famous social spots. The area has all the important units needed by every tourist. The city center is the safest place in the Panamanian capital and an area of many business centers and institutions.

The skyscrapers form a unique panoramic view and are surrounded by beautiful parks. The area is intertwining between modern and traditional, and this is evidenced by the many landmarks located here. 

Panama City Center is rich in restaurants, nightclubs, and shops. Accommodation ranges from luxury branded hotels to mid-range places to stay. The prices are affordable and are suitable for all types of tourists.


  • You prefer a communicative place with a lot of social spots.
  • You are looking for a place close to landmarks and architecture.
  • You are a tourist, family, couple, nightlife fan, shopping tourist, budget traveler.
  • You don’t mind the noise, car traffic and crowds of people.

2. The Canal Area 

Where to Stay in Panama City Canal Area

The Canal area is the most important and widely known place in Panama City. Here is part of the world-famous Panama Canal, an emblem of the whole country.

To miss this part of the Panamanian capital is like going to the Vatican and not seeing the Pope. The canal is the main trade route in the bay. Tourist attractions are not missing, and here you can find information about them throughout the neighborhood. 

Amador Alley offers visitors a unique sea view of the port and sailing ships. The main attraction here is a cruise to Miraflores and across the Panama Canal.

The places where you can stay are limited and are mostly small hotels and apartments at budget prices with few exceptions. On the promenade, you will find great restaurants with traditional Panamanian cuisine.


  • You prefer a place with beautiful views.
  • You prefer a place near the sea.
  • Looking for a place with interesting tourist attractions.
  • You don’t mind the crowds of tourists.
  • You do not mind the high prices of some hotels.

3. San Francisco

San Francisco is located east of central Panama City and one of the most communicative neighborhoods. If you are a fan of nightlife or a street food tourist then this is your place. 

The area is full of bars, nightclubs, cafes, and many places for social activities. San Francisco meets the needs of every tourist. You have a great choice of where to stay and in what conditions. 

The restaurants offer a wide selection of traditional cuisine as well as world-famous dishes. The prices will surprise you and will be affordable for every tourist pocket.


  • You are looking for a place for nightlife.
  • If you are a street food tourist.
  • You want services at affordable prices.
  • You do not mind the small selection of attractions.

4. Casco Viejo

Where to Stay in Panama City: Casco Viejo

Casco Viejo is one of the most famous and beautiful neighborhoods in Panama City popular as the Old Town. The foundations of the Panamanian capital were built in this area during the Spanish colonial rule. The unique architecture, the historical places, and the cultural atmosphere take the breath away of every tourist.

Casco Viejo is under the auspices of UNESCO and has been restored to its old form. The Old Town of Panama City has an incredibly large selection of restaurants, cafes, shops, and museums.

A big attraction is the local markets where you can find real treasures. Places where you can stay range from luxury and mid-range hotels to beautiful villas and apartments.


  • You are looking for a place for one night.
  • You prefer a place with many cultural attractions.
  • You don’t mind the noise and the crowds of tourists.

5. Obarrio

The Obarrio area is located in the central part of Panama City and is the most popular spot among tourists. It is the second landmark paradise after the Old Town. 

This is completely adapted to the needs of visitors and offers great opportunities for any kind of tourism. If you are a fan of heritage architecture and historical landmarks, there is a lot to see in Obarrio. 

If you are a family or a couple, you must know that area is considered one of the safest in the Panamanian capital. If you are on a street food tour here, the restaurants will impress you deeply with their cuisine. 

The places where you can stay are reasonably priced and range from hostels, boutique hotels, budget places. The nightlife in Obаrrio boils to the max.


  • You are looking for a place with tourist attractions of different types.
  • You prefer a communicative place with a lot of social spots.
  • You want a place near the center of Panama.
  • You don’t mind the noise and the influx of tourists.

Tips for choosing Best Places to Stay in Panama City

It is advisable to choose the places where you can stay after you have researched the area in which they are located. This is true for every metropolis like Panama City

Unfamiliar areas and remote neighborhoods are not a good idea for accommodation despite their low prices. If you are a couple or a family, choose the central areas there are many things you can see and very good conditions for accommodation

Do not stay in private homes or places that are offered to you by random people on the street, frequently encountered in Panama City. It is advisable to avoid the neighborhoods of Surundu, El Maranon, and El Chorillo, which are known for high crime and drug trafficking

Although the main streets and squares are safe at night, tourists need to be careful. Most of the places where you can stay are well equipped, and the service is friendly and welcoming. 

Depending on the type of your visit to Panama, choose the most suitable accommodation. If you are a sightseeing tourist choose the central areas, there you have well connected public transport. The same goes for street food tourists who will definitely be satisfied with the food in Panama City.

Panama City – Panama vs. Panama City – Florida vs Panama City Beach?

Panama City and Panama City Beach are in Florida and separated from Panama City, Panama, by the Caribbean Sea. Panama City, Panama is more famous, larger, and with more history compared to the other two cities. 

The city boasts a beautiful center, culture, and attractions. Besides the economic and business center of Panama, Panama City also has several marinas and that open a range of water tourism. Panama City Beach is still gaining tourism popularity, but mostly the beaches are the most visited places in the city. 

Panama City is more visited by Panama Beach but is in the background compared to Panama City, Panama. Although all three cities are notable for their attractions, they are often called only the name Panama

This can lead to confusion, especially since they are in two completely different countries. Panama City has the advantage of being the capital among the other two cities, and this cannot be ignored.

Is It Worth Visiting Panama City?

If you are wondering whether to visit Panama City, the answer is an absolute Yes. The city wins the hearts of its visitors with its unusual places and impressive sights

The capital of Panama is a bridge between two cultures and two continents of North and Latin America. The city is littered with skyscrapers as a guess at how well developed it is economically. 

The locals are friendly, and most of them speak very good English. Large shopping malls, entertainment venues, beaches, and heritage architecture are on every corner. Definitely worth visiting Panama City.

Is Panama City Dangerous For Tourists?

Although considered a safe city, visitors should be careful. As in any metropolis, pickpockets are part of the urban life of Panama City, especially after dark

Public transport is safe, but you must be careful with stops and bus stations because there is a hangout for petty thieves. Avoid taking taxis from the street as it is preferable to order, taxi call machines are on almost every section.

Panama City has not been the target of terrorist attacks so far. All necessary security measures are imposed, especially for malls and entertainment venues. The locals are always friendly and kind and will be happy to help or guide you if you get lost.

What Is The Best Month To Visit Panama?

The best time for your vacation in Panama is the first half of the year when the climate is dry and tropical. In particular, the most favorable months are between January and May

After mid-May, the rainy season enters the archipelago. The average annual temperature in Panama is principally 32 degrees

The Pacific climate and the Caribbean breeze predispose to short rains almost every day and a definite humid period until November. In the second half of the year, Panama is more socially active and then hosts festivals, fiestas, events, and customs.

Is Panama Safer Than Costa Rica?

The high crime rate in Costa Rica has a negative effect on the tourist flow in the country. It is quite possible to become a victim of crime in broad daylight. 

Panama and Costa Rica are affected by drug trafficking because of their proximity to Colombia. Authorities in both countries have identified areas where it is not desirable to travel for this reason. 

However, Panama is considered safer than Costa Rica and is more preferred by visitors. Apart from petty theft and pickpocketing, the Panamanian capital has no other alarming signs of danger for tourists.

Does Panama Have Good Beaches?

The Caribbean coast and the Pacific Ocean give Panama City unique beaches. The promenades are long and wide and captivate tourists with amazing panoramic views. The beaches are long striped and are fantastic for surfing, water sports, swimming, and relaxation

In the first half of the year, when the weather is dry and tropical, the waters are calm and ideal for vacation. In the second half of the year, during the rainy season, the sea is stormier and catches the eye of surfers.

Where To Stay In Panama City Backpacker?

The Panamanian capital has great conditions for all kinds of tourism, including backpacks. The best place for backpackers in Panama City is the Obarrio neighborhood

It is located in the city center near many tourist attractions. It is perfectly suitable if you want to stay overnight or you are on a budget. 

Obarrio is considered one of the safest and most famous areas for visitors. The area has a large selection of public transport, sights, restaurants, and places for nightlife. Besides, the hotels, hostels, and places to stay at completely affordable prices abound in Obarrio.

Where To Stay In Panama City For Your First Time?

If you are looking for the best place in Panama City to stay for the first time, then Casco Viejo is right for you. It is one of the most beautiful neighborhoods of Panama City and is full of sights, great colonial architecture, and amazing street art. 

Also known as the Historic Spring of Panama City, definitely Casco Viejo has many things to see and do. The places to stay range from low class to luxurious and every tourist can find a comfortable place at affordable prices. Your first visit to Panama City will certainly be great if you choose this area to stay.


Panama City differs from the usual tropical destinations mostly by its spirit brought to the historical landmarks. The strategic location of the city will still bring it dividends, mostly of a tourist nature.

About Author

I'm Linda Smith. I'm passionate about traveling and I'm here to share with you all my travel experiences and tips. I hope all these things will make your travel easier.

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