4Views 0Comments
Where to Stay in Panama City, Panama
Casco Viejo
Casco Viejo is Panama City’s historic heart and, for most visitors, the place they spend the bulk of their time. Compact and walkable, it’s made up of stone churches, small plazas, pastel façades, and narrow streets that feel far removed from the glass towers across the bay.
This is the most beautiful area of the city, and where most people want to be based.
It’s also a neighbourhood that has changed dramatically over the last decade or so, and most streets are now lined with grand hotels, fancy restaurants, and rooftop bars aimed squarely at visitors and wealthy locals. Some restorations have been handled with care, others feel closer to stylised replicas, prioritising atmosphere over fidelity.
Yet some of the old Casco Viejo remains: those same streets abut another with abandoned façades, visibly decaying homes, or families still living in buildings yet to be redeveloped. Part of what makes this area so compelling – and occasionally uncomfortable – is how little of this contrast has been reconciled. The shift happens block by block; it’s abrupt, and often jarring.
What makes Casco Viejo compelling – and occasionally uncomfortable – is how little of this contrast has been reconciled. One street is lined with boutique hotels and curated terraces; the next with abandoned façades, visibly decaying homes, or families still living in buildings yet to be redeveloped. The shift happens block by block, is abrupt, and often jarring.
The Casco Viejo Essentials
Cost & Who Stays Here // Accommodation in Casco Viejo generally sits at the upper end of the city’s price range, particularly for well-located boutique hotels in restored buildings. It attracts first-time visitors, short-stay travellers, and anyone prioritising atmosphere and walkability. Budget options still exist but are now more limited and get booked up quickly.
Nearby // Historic churches, plazas, and small museums, Panama Canal Museum, Mercado de Mariscos and waterfront
Pros // Walkable and architecturally rich, strong concentration of cafés, bars, and restaurants, easy to enjoy without relying on transport. Great for short stays.
Cons // Busy and noisy, especially in the evenings, higher accommodation prices, a more curated touristic version of the city. Transport links sometimes a challenge.
Hotels
American Trade Hotel | Housed in a grand neoclassical building that has lived several lives before becoming a hotel, American Trade still carries a sense of scale that’s rare in Casco, with high ceilings, heavy doors, and generously sized rooms. Interiors lean into mid-century lines and Latin American modernism, with enough restraint that the details don’t fight for attention. The rooftop pool, small but well placed, looks out across Casco and the bay beyond. A favourite of many visitors.
Hotel La Compañía | Dating back to 1688, Hotel La Compañía occupies an entire block in Casco Viejo and unfolds across three distinct wings – Spanish Colonial, French Colonial, and American Beaux-Arts – each treated as its own architectural chapter rather than smoothed into one. Interiors are unapologetically grand, with stone walls, heavy beams, moulded ceilings, and a deliberate sense of drama as you move between spaces. Five restaurants and multiple bars are spread across the building, many opening onto a large interior courtyard that anchors the hotel at its centre.
Sofitel Legend | Occupying the former Club Unión de Panamá, a century-old Spanish Colonial building on the historic waterfront, Sofitel Legend Casco Viejo is one of the few hotels in the district with genuine sea-facing scale. Interiors pair Sofitel’s restrained French polish with restored architectural bones, and many rooms look directly out over the Pacific rather than into the old streets. A full spa, large fitness centre, multiple restaurants and bars – including a rooftop and a café specialising in proper pastries – give it a breadth that’s rare in Casco.
Amarla Boutique Hotel* | This adults-only hotel occupies a beautifully restored colonial home, where every corner feels shaped by artisans and local crafts rather than corporate design. With just eight individually decorated rooms, original photography and handcrafted furniture are woven into the spaces in a way that feels deliberate and intimate, from carefully chosen textiles to small antique touches. Above it all, a rooftop terrace with a jacuzzi looks out over cathedral spires and Panama Bay, while a quiet restaurant and attentive service make it easy to lose track of time within its walls. This is our pick!
Las Clementinas | Set inside a restored early-20th-century building, Las Clementinas was designed as suites rather than hotel rooms, which shows immediately in the proportions and layout. Interiors are clean and modern, with kitchens, living space, and just enough original detail left exposed to anchor it in Casco’s past. It feels closer to an apartment house than a hotel, especially in the quieter hours. Downstairs is their restaurant, Mahalo, where we had a genuinely excellent brunch!
Central Hotel | First opened in 1874, Central was one of the original grand hotels of the old city, and its restoration leans heavily on that lineage rather than reinvention. The building retains its classic layout and restrained elegance, airing whitewashed interiors and restrained detailing with modern finishes that keep the rooms feeling light and composed rather than ornate. A rooftop pool, spa, bar spaces, and a long-standing Argentinian restaurant round out the experience, reinforcing Central’s role as a proper, full-service hotel rather than a decorative boutique stay.
Tantalo is most famous for its rooftop bar – somewhere the night rarely ends before 3am, but the cocktails are fairly average – but it’s also a popular hotel in the centre of Casco Viejo. If you plan to be up on that rooftop most nights (or partying elsewhere), this would be a great shout but not a place for those that appreciate an early night.
Airbnbs
Before we get on with our selections, it’s important to note that many of the apartments in Casco Viejo, whilst beautiful, all have a tendency to look quite familiar and offer a very similar vibe – usually due to the fact that many hosts own all or several apartments in the same building.
Alluring One-Bed* | We stayed in this one-bedroom apartment at the end of our month in Panama and were really happy with our choice. It was definitely a property at the more affordable end of the price bracket, but was still brand new, furnished to a super high standard (would absolutely be considered more luxurious if elsewhere in Central America), had an excellent kitchen, a fabulous bathroom that was ideal after a few rustic days in the San Blas islands and well-located.
The same host also has this really beautiful two-bedroom overlooking Plaza Herrera (we love the tiles!).
The Grand Penthouse | This stylish one-bedroom penthouse features an eclectic modern design, and is perfect for those who appreciate high-end finishes and unique, colourful decor. Also has access to a shared rooftop with BBQ area, plunge pool and sunbathing area.
Also available on Booking.com – look there for all listings in the building (they have quite a few)
Cozy Apartment | The use of natural wood and choice of tiles give this contemporary apartment a warmer feel than many others in Casco Viejo, plus it’s gorgeous and has excellent reviews.
Gorgeous Flat | This cute and stylish studio has been recently renovated, and combines modern comfort with classic charm inside a beautiful colonial building. Ideal for a couple.
Bright & Cosy Loft | We really like this one-bedroom apartment. It’s light and bright, with stylish accents and original features like exposed bricks and high ceilings.
Many apartments in this part of Panama City have a balcony and/or access to a shared rooftop, but few have a private terrace. Two wonderful exceptions are the super spacious one-bedroom Casa Bandera and this super comfortable two-bedroom that’s set over three floors and even has a hot tub!
There are a surprisingly large number of properties with access to shared pool in the centre of Casco Viejo, so if this is something you’d appreciate in your apartment, take a look at Casa Saena, Iconic Double Apartment, Casa Abes and Casa Arias.
Other good options that caught our eye include Luxury Mid-Century Apartment, Old Town View, Escape to the Heart of Casco, Two-Bed With Splash Pool, Amazing Loft, Panama 15, Fancy Apartment, Modern Apartment, Unique & Charming Loft,
It’s difficult to find any properties in what we would describe as the ‘budget end’ of the spectrum, but these two stylish one-bedroom apartments (one and two) are great value and have excellent ratings. (Estrella is very budget friendly, but whilst it has very good reviews, it’s small so would only really suit those that really want an Airbnb in Casco Viejo but don’t mind compromising on size).
Travelling with a group of friends and looking for something that little bit special – and a private rooftop pool? You have to take a look at the incredible Old Tower Penthouse. Or if you need even more space, don’t miss Casa Vidal, a full colonial property that has been beautifully restored, the stunning Unique Historic House or the five-bedroom penthouse, Casa Diez.
As we mention in our guide to ‘Driving in Panama’, having a car whilst you explore Panama City is far from ideal. If you really have no choice, this apartment would be a great option as it comes with secure and private parking.
Hostels
Magnolia Inn* | Looking for somewhere affordable but comfortable for a couple of nights before we went to San Blas, we settled on this hotel-hostel within a centuries-old stone building. Accommodation is uncomplicated and unfussy, with shared and private rooms spread across the old structure and it was a good option for a central location at an affordable price point. It’s also got a decent kitchen and you can leave your luggage with them whilst you head to the islands.
If you’re looking for a good private double though, it’s a good idea to book early.
Viajero Hostel | A fantastic hostel with a modern, industrial feel, with large, open communal areas and simple interiors that still carry a bit of style rather than bare-bones practicality. The rooftop is the real draw – a generous pool overlooking the city paired with a relaxed bar area and a restaurant that sells excellent Mexican food – while private rooms and dorms are simple but well finished, sitting comfortably alongside the hostel’s social spaces rather than feeling like an afterthought.
Some backpackers will much prefer it to Magnolia due to the rooftop and pool access.
