Why stay in Panama City?
Panama's bustling capital city, Panama City, runs along the Pacific Coast to the Panama Canal. It is an important city for commercial and transportation reasons, but might not be the first place you would think to visit in Central America. Still, it can offer the visitor a look back into its colonial past and a glimpse into what it looks like to be next door to one of the most important shipping routes in the world. (Here is a hint - it will probably not look like you would expect a Central American capital city to look.)
For a city as wealthy as Panama City is, there are still a handful of budget options where visitors can stay, from hostels to budget hotels to guest houses. Just remember that "hostels" are not only for the young or the backpacking crowd (even if the property has the word "backpacker" in the name!) - they are perfect for budget travelers who are interested in meeting other travelers. A few Panama City hostels worth mentioning are highlighted below.
Hospedaje Casco Viejo has only 14 rooms, so guests receive more personal service, and is located in a beautifully restored mansion. Mamallena Backpackers is close to popular bars and night clubs and offers free breakfast all day. Hotel Marparaiso is in the center of the city and offers free airport transfers.
If none of these hostels sounds like it is the right one for you, don't worry. There are other Panama City hostels listed here which you can choose from. Just keep browsing the descriptions until you find the one that suits your needs.
Need anything else for your trip? You can look for the best deals on cheap airfare to Panama City and book your ticket now. You can also learn more about the area in our Panama City Travel Guide.