Where to Stay in Panama City: Choosing the Right Area

Panama City has two very different sides: a historic old town full of character and a modern city of skyscrapers, shopping malls and restaurants.

Both are worth exploring. But they aren’t necessarily close enough to walk between.

That’s why I recommend choosing your hotel based on what you want to do, not just its price or star rating.

Which area is right for you?

Area	Best for
Casco Viejo	History, architecture, restaurants and nightlife
Marbella / Financial District	Central location, modern hotels and convenient city access
El Cangrejo	Restaurants, cafés and Metro connections
Avenida Balboa	Waterfront walks, skyline views and the Cinta Costera

Casco Viejo: Historic Panama City

If you love colonial architecture, small plazas, restaurants and rooftop bars, Casco Viejo is an attractive choice.

It’s one of the most enjoyable parts of Panama City to explore on foot.

But the old town isn’t necessarily the most convenient base for visiting other parts of the city. You’ll probably use taxis or ride-hailing services for many trips.

Some streets can also be lively at night, so check your hotel’s location if you prefer somewhere quiet.

Marbella and the Financial District: A Practical Base

I’ve stayed around Marbella and Bella Vista, in the modern part of Panama City.

This area is worth considering if you plan to explore several parts of the city rather than spend most of your time in the historic center.

You’ll find modern hotels, restaurants, shopping and commercial areas.

Depending on your exact hotel location, you may also be within walking distance of a Metro station.

It’s a practical choice for travelers who want a convenient base without being tied to one tourist district.

El Cangrejo: Restaurants and Local City Life

El Cangrejo is a lively neighborhood with restaurants, cafés and shops.

The Vía Argentina Metro station makes parts of this area convenient for getting around.

It’s a good choice if you enjoy exploring a neighborhood on foot and having plenty of places to eat nearby.

Avenida Balboa: For the Waterfront

If you enjoy ocean views and walking, consider staying near Avenida Balboa.

The Cinta Costera waterfront promenade is one of the city’s highlights, with impressive views of Panama City’s skyline.

However, hotels along the waterfront aren’t necessarily next to a Metro station. Check the actual walking route before booking.

Two hotels to compare

If you’re looking for a hotel in the modern city center, here are two options listed on our booking page.

The Executive Hotel

Located in the financial district, approximately four minutes’ walk from Iglesia del Carmen Metro station according to our hotel listing.

Worth considering if access to the Metro is a priority.

Hotel Riu Plaza Panama

A larger hotel in the Marbella financial district, near Calle 50.

It offers an outdoor pool, restaurants and other hotel facilities. Iglesia del Carmen Metro station is approximately an 11-minute walk away according to our listing.

These are location-based options, not hotels I’ve personally stayed in.

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My advice before booking

Panama City is spread out, and traffic can affect how long it takes to get around.

If you’re planning to visit the Panama Canal, Casco Viejo, shopping areas and other attractions, you won’t necessarily be able to walk everywhere, regardless of your hotel.

Before booking, check three things:

1. How close is the hotel to the places you want to visit?
2. Can you easily reach a Metro station, or will you mainly use taxis or Uber?
3. Are there restaurants and shops nearby for when you return in the evening?

For a first visit with several different sightseeing plans, I would start by looking at the central neighborhoods around Marbella and El Cangrejo.

If your main interest is history, restaurants and enjoying the atmosphere of the old town, Casco Viejo might be a better fit.

The best hotel isn’t always the most expensive or the highest-rated one. It’s the one that makes your trip easier and more enjoyable.

Compare our selected hotels and other travel arrangements on the Panama booking page.