Panama City is a spread-out city, and where you sleep decides how much of your time goes to taxis. The visitor map splits into three useful bases: the historic peninsula of Casco Viejo, the modern bayfront around Calle Uruguay and the Cinta Costera, and the business districts of Bella Vista, El Cangrejo and the financial core. Each suits a different kind of trip.
Casco Viejo: atmosphere and walkability
The UNESCO-listed old quarter is the best base for a first visit if you want character. Cobbled streets, plazas, rooftop bars and restaurants are all within walking distance, and you can see the cathedral, the Plaza de Francia and the seawall without a car. The trade-offs are limited parking, hot, narrow streets and evening noise from bars. Our two picks here are the American Trade Hotel, a restored 1917 building on Plaza Herrera with fine dining and live jazz, and Tantalo Hotel, a nine-room art hotel with a famous rooftop bar. Choose the American Trade for a polished stay and Tantalo for a social, design-led one. From either, a taxi to Miraflores takes about twenty minutes, depending on traffic.
The bayfront: luxury and views
The modern city along the Cinta Costera promenade has the high-rise hotels, the best spas and sea views, and Calle Uruguay's restaurants and nightlife. The Waldorf Astoria Panama is our splurge pick, about a block from the promenade, with a seventh-floor pool, an award-winning spa and a Les Clefs d'Or concierge who can arrange canal tours. It is ideal for special occasions and for travellers who want service as much as sightseeing. The compromise is distance from the old town, which is a short taxi ride rather than a stroll.
The business districts: value and facilities
Bella Vista, El Cangrejo and the financial district have the chain hotels, malls, restaurants and the best rates for the facilities. Hotel Riu Plaza Panama is a big, comfortable choice with an outdoor pool, a gym and family rooms, in the business and financial district. TRYP by Wyndham Panama Centro, in El Cangrejo and Bella Vista, is the budget-friendly pick, with a rooftop pool and free parking, and it is a short walk to restaurants. These areas are practical for car rental and for tour pickups, but you will take taxis to the sights.
Which to choose
For a first trip of three or four days, we would stay in Casco Viejo for at least two nights, because the evenings are the best part of the old town, and consider a bayfront or business-district hotel for the rest if you want a pool and more space. Couples marking an occasion should look at the Waldorf Astoria or the American Trade Hotel. Families do well at Riu Plaza, with room types for groups and a pool. Budget travellers get the most for their money at TRYP.
Good to know
Rates vary strongly with the season and with events, and the dry months from December to April are the busiest. Ask about breakfast, parking and air conditioning before you book, particularly in Casco Viejo, where buildings are historic. Many tour operators pick up from hotels in all three areas, so you can book canal, San Blas, Gatun Lake and Embera trips from any of them. If you plan an early start for San Blas, a hotel in the modern city is slightly faster to reach the highway, but the difference is small.
One-night strategies
If you have a layover or only one night, stay close to the airport side of town in El Cangrejo and book a half-day city and canal tour. If you have more time, split your stay: two nights in Casco Viejo for atmosphere and one or two in the bayfront or business district for pool time and rest after a long San Blas or canal day.
