Best Areas to Stay in Panama City Panama

Panama City surprised me the first time I visited. Before arriving, I expected a typical Central American capital, but what I found was a modern skyline, huge shopping malls, a metro system that actually works, and one of the best places to shop in Latin America.

In this guide, I’ll share where to stay in Panama City Panama are, based on my own experience, who each neighborhood is best for, and where I’d stay if I were returning tomorrow..

This guide is only about the best areas to stay. If you’re here on one of Copa’s layovers and want to use the time to see this city, start with by guide on what to do on a long layover in Panama City.

Quick Answer: Best Areas to Stay in Panama City

I think these are the best overall places to stay in Panama City.

• Casco Viejo – Best for first time visitors and if you’re here for only a short time. Lots of life rooftop bars, history and a nice ambiance. This is a very walkable town and one of the best areas for nightlife with. Here may be a little more expensive with more mid range to luxury stays.
• El Cangrejo – I was surprised by how walkable this neighborhood was. There are so many convenient places very close to the hotels. You don’t have to go far for anything or even drive. It’s safe and attract a lot of expats because there are a lot of things to do here.

Where I’d Stay in Panama City

• For a first trip: Casco Viejo
• For safety and luxury: Punta Pacifica
• For walkability and value: El Cangrejo
• For business: Obarrio
• For nightlife: Casco Viejo or Bella Vista
• For families: San Francisco

Where to stay in Panama City: My experience

I’ve visited Panama City several times now, usually because of Copa’s long layovers. Because of that, my experience with the city is probably different from someone spending two weeks here on vacation. It’s probably like someone coming here on a quick business trip or a conference.

Most of my time has been spent exploring neighborhoods like Casco Viejo, wandering shopping malls that seem absurdly large, using the metro, and figuring out which parts of the city are actually worth seeing during a short stopover.

Personally, if I only had one or two nights in Panama City, I’d stay in Casco Viejo every single time. It has the most character, it’s one of the easiest areas to explore on foot, and it feels the most memorable. That said, if I were visiting for work, wanted luxury, or planned to stay longer, there are a few other neighborhoods that make more sense.

1. Casco Viejo

Casco Viejo is easily my favorite part of Panama City. Whenever I have a layover long enough to leave the airport, this is usually where I end up. I’m leading towards thinking this one of the best areas to stay in Panama City.

I’m a sucker for old historic districts, and Casco Viejo has that mix of colorful colonial buildings, churches, rooftop bars, and narrow streets that makes it fun to explore on foot. One thing I noticed is how different the atmosphere feels depending on the time of day. Early in the morning, when the streets are still quiet, I found myself enjoying it much more than in the evening when tour groups, after work traffic and nightlife crowds start showing up.

Because the area is fairly compact, you can see a lot in just a few hours, which is one reason I think it’s the best neighborhood for first-time visitors.

Now, you have to be careful not to wander too far from Casco Viejo. The surrounding areas are kind of sketchy. Places like El Chorrillo and Santa Ana you shouldn’t go as a tourist, especially by yourself.

I haven’t personally stayed at Sofitel Legend Casco Viejo, but every time I’ve walked past it, it’s looked like one of the most impressive properties in the city. If you’re looking for a luxury stay in Panama City, this is probably where I’d start my search.

I mainly travel for adventure and culture rather than luxury and pampering. A lot of people say this is the best hotel in Panama City. It’s right on the water and has restaurants, bars, spa service and you can also host events here. The balconies overlook the Guld of Panama.

For a not so flashy and glamorous place, you can stay at the Amazinn Places Boutique Hotel Casa Marichou. There is a rooftop pool on top this secluded hotel.

Stay in Casco Viejo if you want walkability, nice rooftop bars and to have a great first time experience. If you want more quiet vibe with cheaper hotels then skip this town.

2. El Cangrejo

El Cangrejo is mostly in the center of the city, north of the banking district. This place looks relaxed, the sidewalks are lined with trees and is very modern looking. There are mostly cafes, international restaurants and little shops. It looks almost European in nature because of how walkable it is and how many things you can do just in this area alone.

You can do many things in one day here without needing a car or to travel really far. El Cangrejo also has a metro passing through, making it easy to get to other areas rather easily. This area in Panama City is best for travelers who want easy access to a lot of things, easy transport and good walkability.

The Tryb by Wyndham Panama Centro is a good hotel to stay in this area. It’s 1 km away from Panama town center and 10 minutes drive from the Airport. One of my favorite malls, the Albrook mall is just 10 minutes drive from here.

3. Obarrio

Obarrio feels completely different from Casco Viejo. Instead of colonial buildings and tourist attractions, you’ll find modern office towers, shopping malls, and more bustling streets. When I passed through this area, it reminded me more of a business district than somewhere tourists would spend their entire trip.

That doesn’t mean it’s a bad place to stay. In fact, if you’re visiting Panama City for work, I think it’s one of the most convenient neighborhoods in the city. There are plenty of restaurants, cafés, hotels, and shopping centers nearby, and getting around is easy thanks to the metro and the constant flow of taxis and Ubers.

Personally, if I was visiting Panama purely for tourism, I’d still choose Casco Viejo because it has more character and feels more uniquely Panamanian. But if I needed a modern hotel, reliable transport, and easy access to businesses and shopping, Obarrio would probably be my first choice.

For hotels, the Sortis Hotel Spa & Casino is one of the most recognizable luxury properties in the area. If you’re looking for something more affordable, Hotel Mio Panama is another solid option with a good location in the heart of the neighborhood.

4. Bella Vista

I actually spent some time driving through Bella Vista on my way from the airport and immediately noticed how different it felt compared to Casco Viejo. The roads were wider, there were more residential buildings, and the whole area felt more local.

One thing that stuck with me was my Uber driver insisting I visit Calle Uruguay if I wanted to experience Panama City’s nightlife. He spent almost the entire ride telling me which bars were worth visiting and which ones were tourist traps. While I never became a nightlife expert in Panama City because we are usually doing other things, It’s so obvious that this area attracts people looking for restaurants, bars, and a more social atmosphere after dark.

There’s a good budget guesthouse to stay in here called Posada 1914.

5. Punta Pacifica

This is an upscale, polished oceanfront district in Panama City. It’s built mostly on reclaimed land and has most of Panama City’s luxury buildings, high end mall, plazas and has the tallest buildings in the city. You can tell they invested the mot money into this place compared to the other. It’s very clean and modern looking. Sort of Singaporean in vibe. This is not a place made for people to casually walk around. If you just want a safe and quiet neighborhood that’s built around residences and homes then here’s good for you.

6. San Francisco Panama City

San Francisco in Panama City is a neighborhood where families live mostly. It’s near the city center and is less touristy than most places here. The main attraction in San Francisco Panama is the Parque Omar, the largest park in Panama City. There are a lot of restaurants here that cater to locals compared to tourists. There is not any nightlife really like Casco Viejo or luxurious like Punta Pacifica.

If you want something cheaper and more family oriented you can stay here easily. Hyatt Place Panama City is a good mid range hotel to stay at.

Areas to Avoid in Panama City

I’ve read that I have to be careful going to certain places in Panama City because it’s just not suitable for visitors. Areas like El Chorrillo, San Miguelity, Rio Abajo and Santa Ana have higher crime and more poverty.

Panama City probably isn’t the reason most people visit Panama. Most travelers are heading to places like Bocas del Toro, Boquete, San Blas, or Santa Catalina. But if you find yourself spending a few days in the capital, there are definitely parts of the city worth exploring. For me, Casco Viejo remains the standout neighborhood and the place I’d choose to stay again. It has the history, the atmosphere, and the walkability that much of the rest of the city lacks.