The Coolest Hostels and Hotels to Book in Panama City

El Machico occupies a slot on a quiet street in the financial district. It has restaurants on the doorstep and the Pacific Ocean boulevard is a couple of blocks away, while old Spanish Panama is 20 minutes away by bike (the hostel has free cycles). There’s a big pool and the tours booked in-house are excellent value. Rooms are bare except for iron beds and bunks, so check out the lounge areas, which have plenty of social space. There’s even a pool table and a bar.

A pool set in a leafy garden. A big TV lounge, games area and kitchen. Breakfast thrown in. There’s plenty to like about Los Mostros. The hostel has a lively feel and there are near-daily activities in the bar-restaurant (which is daubed in psychedelic street art): everything from salsa dancing to tequila-shot happy hours. Dorms are spartan, with wooden bunks; book the eight-room mixed dorm, since it’s the only one with an en suite. From here, the new centre (with plenty of places to eat) is only a short stroll away.

Emblazoned with trippy street art and set in a balcony-fronted Belle Epoque mansion right next to the old centre, Luna’s Castle is one of Panama City’s best backpacker haunts. There’s a lively bar, where you’ll get cheap shots and decent street-food snacks. Expect also a huge TV lounge, and stunning city and ocean views from many of the dorms. There are privacy curtains on the wooden bunks, but don’t check in wanting calm; this is a big party hostel and the music throbs into the small hours.

Exclusively for guests over the age of 21 (and with a “clothing optional” pool and Panama City’s only axe-throwing wall), Armonia attracts a select crowd – a lot of singletons, too. Dorms and rooms, which are stencilled with striking street art, are lightly furnished with beds and lockers. Upgrade to a private suite if you want a lockable door. Stays include big breakfasts, after which you can head out and explore; the hostel is right next to the rainforested swathes of the Metropolitan Park.

The Panama City branch of this international co-worker chain, aimed at budget travelers, is in the heart of the old Spanish-colonial Casco Viejo, with plenty of bars and dining joints on the doorstep. Dorms and doubles are pricier than hostel-standard but are also a cut above. They have fashionable distressed woods, on-brand stencil art and, in some accommodation, expansive Pacific views. There’s plenty of social space, too; pick your spot by the pool, on the yoga deck, in the movie room or among the guests going on walks and learning how to make ceviche.

Feeling more like a value hotel than a hostel, the Beach House presides over a strip of gray sand on Naos Island – linked to the city by the long Calzada de Amador promenade. There are no dorms, just rooms and suites, all with a clean, cream palette, a scattering of darkwood-laminate fitted furniture and a balcony with an ocean view. There’s a big pool too, and breakfast is included. Embark on a 10-minute cab ride if you want to hit the Casco Viejo for restaurants and bars.

Staying in the Amador feels very back-to-nature: it’s in a big red shutterboard house, next to the Bio Museum in shady Tamburelli Park. You’re an easy stroll from forest-swathed Sosa Hill and the Reserva Cerro Ancón, which teems with all creatures great and small. All dorms come with tangerine-colored beds and curtains (no bunks), while there are also lime-green doubles with en suites, a large kitchen and an alfresco dining area. With no bar or rushing traffic, the only noise comes from birds, tree frogs and cicadas. Pure peace.

Carmencita is well-positioned for getting pretty much anywhere; it’s just south of downtown Panama City, a block from the main transport thoroughfare Vía España and a 10-minute walk from Vía Argentina Metro Station. Plus, there are plenty of cafes and shops on the doorstep. Despite the central location, stays are tranquil: simple en suites (there are no dorms) with floral wallpaper or tropical colors have fitted wardrobes and bedside tables. You’ve also got access to a family townhouse with a patio garden.