Panama City is the capital and largest city in Panama. Located on the Pacific coast, at the southern entrance of the Panama Canal, this bustling metropolis is home to over 1.5 million people in its metropolitan area. Founded in 1519, it is the oldest continuously occupied European settlement on the Pacific coast of the Americas. In this post, we’ll explore the best areas to stay in Panama City, Panama.
The city is famous for its mix of colonial and modern architecture. The Casco Antiguo, a UNESCO World Heritage Site, features restored 17th- and 18th-century buildings, churches, and museums. Meanwhile, districts like Punta Paitilla, Punta Pacífica, and Obarrio showcase Panama City’s modern skyline of glass towers and luxury condos. Notable attractions include the Panama Canal and Miraflores Locks, the Biomuseo, and the Amador Causeway, a scenic road that connects several small islands and offers views of the canal entrance.
Other points of interest include the Cinta Costera, a coastal greenbelt ideal for biking and walking, and Ancon Hill, a forested elevation with panoramic views of the city and canal. For shopping and entertainment, the city offers upscale malls like Multiplaza Pacific and Albrook Mall, one of the largest in Latin America.
Due to its location, Panama City has a tropical savanna climate with a dry season and a wet season. There’s minimal variation in temperatures regardless of the season, and they usually hover between 21 and 30 ºC (70 – 86 ºF). The best time to visit Panama City is during the dry season, especially if you plan to go to the beach.
To get to Panama City by air, the city is served by Tocumen International Airport. Located some 20 km from the city, with direct connections to cities across the Americas and Europe. Buses from other cities in Panama and Central America arrive at Albrook Terminal, which also connects to the Panama Metro. Getting around Panama City is relatively easy using the metro system. The best option for areas not covered by the metro is to go by taxi or bus. You can also choose to rent a car during your stay.
What is the best area to stay in Panama City?
The best area to stay in Panama City is Casco Viejo. This neighborhood combines colonial charm with trendy restaurants, boutique hotels, and cultural landmarks. Staying here means being within walking distance of plazas, museums, and nightlife, all set against the backdrop of restored 17th-century architecture. See accommodation in Casco Viejo.
Bella Vista is probably the best location in Panama to experience the cosmopolitan and modern side of the city. Other areas worth checking out when wondering where to stay in Panama City include Calidonia and the Tocumen Airport area.
Keep reading to find out more about the best areas to stay in Panama City.
The Best Districts to Stay in Panama City: A Quick Guide
Below, you’ll find a list of the best areas to stay in Panama City depending on your travel style and what you may be planning to do during your trip. Keep reading below to find all the specific information you need about each particular area mentioned here.
- Best location in Panama City for sightseeing: Casco Viejo (Old Town)
- Safest area to stay in Panama City: Bella Vista
- Best location in Panama City for nightlife: Bella Vista | Casco Viejo (Old Town)
- Best location in Panama City for families: Bella Vista
- Best location in Panama City without a car: Casco Viejo (Old Town)
- Best location in Panama City for first-time visitors: Casco Viejo (Old Town)
- Best location in Panama City for business travelers: Bella Vista
- Best location in Panama City for shopping: Bella Vista | Calidonia
What are the best hotels in Panama City?
Something more specific in mind? Here’s a list of some of the best hotels in Panama City. No matter your reason for visiting the city or style, you’ll find it here!
- Most unique hotel: Global Hotel Panama
- Best mid-priced hotel: Holiday Inn Panama Distrito Financiero
- Best budget hotel: Hotel Pension Corona
- Best luxury hotel: Riu Plaza Panamá
- Best boutique hotel: La Isabela Suites
- Best resort: The Santa Maria, a Luxury Collection Hotel & Golf Resort
- Best hotel with a pool: AC Hotel by Marriott Panama City
- Best inn / B&B: Panama House Bed & Breakfast
- Best hostel: Blu Hostel
Best Areas to Stay in Panama City: Top Districts
1. Casco Viejo (Old Town)
The best area to stay in Panama
The Old Town, also known as San Felipe, is Panama City’s most picturesque and historically interesting area and is home to many of its most important sights.
Located on a small peninsula southwest of the modern city center, Casco Viejo is Panama City’s historic quarter and a UNESCO World Heritage Site. Originally established in 1673 after the destruction of the first Panama City by pirates, it preserves colonial-era architecture and narrow cobblestone streets laid out in a grid. The area is compact and walkable, with restored buildings housing museums, churches, boutique hotels, and rooftop bars.
Notable landmarks include Plaza de la Independencia, the Metropolitan Cathedral, Plaza Bolívar, and the National Theatre of Panama. The Museo del Canal Interoceánico explains the history of the Panama Canal, while the American Trade Hall reflects the neighborhood’s revitalization.
Casco Viejo also stands out for its vibrant nightlife and dining scene. The neighborhood offers some of the city’s most popular restaurants and bars, many set in colonial buildings with open-air patios or rooftop views. Despite its compact size, it’s one of the liveliest areas after dark.
While not directly connected to the metro, Casco Viejo is accessible by bus and taxi, and it’s just a short ride from downtown and Albrook Terminal. The closest metro stop is Estación Cinco de Mayo, about a 10-minute walk from the heart of the district.
Accommodation in Casco Viejo tends to be boutique-style, often located in renovated colonial buildings. It’s ideal for travelers who want a mix of culture, history, and nightlife in one of the most atmospheric parts of the city.
Our hand-picked accommodations in Casco Viejo, Panama City
La Concordia – Boutique Hotel
La Concordia—Boutique Hotel in Panama City offers spacious rooms with air conditioning, private bathrooms, and balconies. Each room includes a work desk, mini-bar, and free Wi-Fi throughout the property.
2. Bella Vista
Panama City’s modern side
Bella Vista, located a few miles north of Casco Viejo, is one of the most affluent districts in Panama City.
Bella Vista is a central district located northeast of Casco Viejo, bordered by Avenida Balboa to the south and Calle 50 to the north. Known for its modern high-rises, walkable streets, and commercial mix, it’s one of the most developed and accessible parts of Panama City. The area’s layout is structured, with wide avenues and a grid of residential and office buildings.
Bella Vista is home to Cinta Costera, a waterfront park and multi-use path that connects to Casco Viejo and offers views of the Pacific and Panama City’s skyline. Inland, you’ll find shopping centers, banks, supermarkets, and international restaurants. The area is also close to Iglesia del Carmen, a neo-Gothic church that lends its name to the nearby Iglesia del Carmen metro station, one of the most used on Line 1 of the Panama Metro.
Bella Vista has multiple Metro stations (Santo Tomás, Iglesia del Carmen, Vía Argentina, and Fernández de Córdoba), so traveling around the city is simple.
While Bella Vista doesn’t have major historical landmarks, its central location and excellent public transport connections make it a practical base for exploring the city. It’s also a short ride to Albrook Terminal, the airport shuttle stops, and key commercial zones like Obarrio and El Cangrejo.
Accommodation ranges from international hotel chains to serviced apartments. Bella Vista is ideal for travelers looking for a central, well-connected neighborhood with access to parks, dining, and transportation.
Our hand-picked accommodations in Bella Vista
Hilton Garden Inn Panama City Downtown, Panama
Hilton Garden Inn Panama City Downtown is set in Panama City’s financial district, 2 blocks from Via España and the metro station. This modern hotel features a gym, a hot tub with panoramic views, free Wi-Fi, and free parking.
3. Calidonia
An excellent central district in Panama
Calidonia stretches along the coast between the Historic Center and the Financial District.
Calidonia is located between Bella Vista and the Casco Viejo peninsula, stretching along the central section of Avenida Central and Avenida Balboa. Once one of Panama City’s main commercial corridors, it retains a traditional, local feel with smaller shops, street vendors, and a mix of older mid-rise buildings.
Calidonia owes its name to the one that the Romans gave to Scotland (Caledonia). It is the only remnant of that country’s efforts to colonize the isthmus at the end of the 18th century.
This neighborhood is home to the Museo Afroantillano, which showcases the cultural contributions of Afro-Caribbean communities to Panamanian society, particularly those who worked on the construction of the Panama Canal. Another nearby attraction is the Plaza 5 de Mayo, a central plaza surrounded by government buildings and close to the National Assembly.
Calidonia is well-connected by public transport. The Cinco de Mayo metro station on Line 1 lies at its southern end, and many city buses pass through the area. Its location makes it convenient for reaching both the historic center and the more modern commercial districts.
Hotels here are mostly budget to mid-range, making it an option for travelers looking for lower prices in a central area. While the infrastructure is more basic than in newer parts of the city, Calidonia’s proximity to key landmarks and transport makes it a practical choice for short stays.
4. Tocumen International Airport
The best location for travelers in transit
The surroundings of Tocumen International Airport are a convenient area to stay in Panama City for travelers on a long stopover.
Located about 12.5 mi (20 km) east of downtown Panama City, Tocumen International Airport (PTY) is the country’s main international gateway. It is one of the busiest airports in Central America, handling flights to and from cities across the Americas and Europe. PTY serves as a hub for Copa Airlines, which offers extensive regional connections and long-haul flights to destinations such as New York, Madrid, São Paulo, and Buenos Aires.
The airport has two passenger terminals, with Terminal 2 inaugurated in 2022 to expand international service capacity. Facilities include a wide selection of duty-free shops, restaurants, VIP lounges, and car rental services. Wi-Fi is available throughout both terminals.
Transportation to the city center is available via taxis, ride-hailing apps, hotel shuttles, and limited bus routes. While there’s currently no direct metro link, ongoing infrastructure projects aim to improve connectivity to the airport in the future.
Staying near Tocumen can be a practical choice for travelers with layovers, early departures, or business commitments in the eastern part of the metropolitan area. Hotels near the airport tend to cater to transit passengers, offering amenities like free shuttles and breakfast included.
Read this in other languages:
- |ES| Dónde alojarse en Ciudad de Panamá.
- |PT| Melhores áreas para se hospedar na Cidade do Panamá.
- |IT| Le migliori aree in cui soggiornare a Panama City, Panama.
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