11 Best Hostels in Panama City

Panama House Bed & Breakfast is a delightful and cozy hostel located in the lively neighborhood of El Cangrejo in Panama City. The hostel offers a comfortable and affordable stay with spacious and beautifully decorated rooms. The charming gardens provide a peaceful and relaxing atmosphere, where you can enjoy a cup of coffee or a book. The hostel is run by a friendly couple who are always ready to help their guests and provide them with useful travel tips.

The location is ideal for exploring the city's vibrant culture, with many restaurants, bars, and shopping areas within walking distance. Panama House Bed & Breakfast is an excellent choice for anyone looking for a comfortable and charming stay in Panama City, with friendly staff and a welcoming atmosphere.

Oyebonita Hostel provides a perfect home base for travelers seeking comfort and convenience. Guests can relax in air-conditioned rooms equipped with private or shared bathrooms. Each room is equipped with a shower and hairdryer, ensuring a refreshing and enjoyable stay.

Oyebonita Hostel offers all the essentials, including free WiFi throughout the property, a cozy lounge, and a shared kitchen. It’s known for its welcoming staff, who go out of their way to make visitors feel at home, as well as its impeccably clean facilities. The well-equipped kitchen is a favorite for those who like to prepare their own meals, adding to the overall ease of the stay.

With attractions like the Canal Museum and Maracana Stadium nearby, Oyebonita Hostel is in a great spot to explore Panama. Whether it's sightseeing or relaxing, this hostel offers everything you need for a memorable trip.

Eden's Garden Hostel is a cozy and comfortable hostel located in the lively and vibrant neighborhood of Bella Vista in Panama City. The hostel offers clean and spacious rooms with comfortable beds, and the dorms have lockers for secure storage. The hostel also features a communal kitchen, where guests can prepare their meals, and a terrace with a barbecue area, perfect for socializing with other travelers.

The hostel's friendly staff is always willing to provide advice and recommendations on the best places to visit in the city. The hostel is conveniently located near many restaurants, bars, and shops, and just a short walk away from the Cinta Costera waterfront park. Eden's Garden Hostel is an excellent choice for travelers who want to explore the city's lively atmosphere and meet new people.

Bodhi is a unique and eco-friendly hostel located in the trendy El Cangrejo neighborhood of Panama City. The hostel is made entirely of recycled materials and features a rooftop garden and a solar-powered water heating system.

The hostel offers comfortable and spacious rooms with private bathrooms and air conditioning. The communal areas are decorated with recycled art and offer a relaxing and peaceful atmosphere. Bodhi is an excellent choice for anyone looking for an environmentally conscious and comfortable stay in Panama City.

Casa Relic offers a great stay with air-conditioned rooms that come with garden views, wardrobes, and TVs, ensuring comfort for every guest. The shared bathrooms are equipped with showers for added convenience.

Guests can enjoy fantastic facilities like a relaxing garden and terrace, perfect for unwinding after a day of exploring. There's also a restaurant and bar, and free WiFi available throughout the property. For those looking to have some fun, Casa Relic offers a lounge, games room, and outdoor seating area, making it easy to chill or meet fellow travelers.

Casa Relic's on-site restaurant serves up delicious lunch and dinner options, with special menus catering to different diets. For a more laid-back vibe, guests can also enjoy a coffee shop and outdoor seating, offering the perfect spot to enjoy a meal or drink while soaking in the atmosphere.

Lunas Castle’s central location makes it easy to explore nearby attractions like the Canal Museum and Presidential Palace, as well as Ancon Hill and Bridge of the Americas.

Magnolia Inn is a beautifully restored colonial-style mansion located in the historic Casco Viejo district of Panama City. The hostel offers spacious rooms with comfortable beds and air conditioning. The hostel's rooftop terrace offers a stunning view of the city skyline and the ocean, making it the perfect place to relax and enjoy the beautiful surroundings.

The hostel also has a restaurant that serves delicious meals, including a free breakfast for guests. Magnolia Inn is an excellent choice for anyone looking for a comfortable and stylish stay in the heart of Panama City.

El Machico Hostel is a budget-friendly hostel located in the bustling neighborhood of Marbella in Panama City. The hostel offers comfortable dorms and private rooms at affordable rates. The hostel features a communal kitchen, where guests can prepare their meals, and a cozy lounge area where they can relax and socialize with other travelers.

The hostel is situated in a convenient location, just a short walk away from the city's main attractions, such as the Cinta Costera and the historic district of Casco Viejo. It's also near many restaurants, cafes, and supermarkets. El Machico Hostel is an excellent choice for budget-conscious travelers who want to be close to the city's main attractions and meet other like-minded travelers.

For travelers chasing adventure on a budget, Posada 1914 hits the sweet spot. This lively spot in Panama City puts you right where the action is—surrounded by restaurants, local shops, and a metro stop just around the corner. It’s the kind of place where new friendships form over a shared dinner in the common kitchen or while swapping stories in the lounge.

The rooms come in a variety of styles to fit different travel needs, from solo backpackers to small groups. What really sets this place apart is the on-site climbing wall—perfect for those who like their fun with a bit of a challenge. Other handy perks include speedy Wi-Fi, an airport shuttle service, on-site laundry, and a communal kitchen where you can whip up your favorite meal. Posada 1914 is more than just a place to crash—it's a basecamp for city adventures.

Immerse yourself in the vibrant heart of Panama City at Casa Areka Hostal Urbano. This hostel effortlessly blends modern comfort with an authentic urban atmosphere. Nestled in the trendy district, you're just steps away from bustling markets, lively bars, and iconic landmarks. The hostel's design is a fusion of local art and contemporary aesthetics, creating a unique and inspiring environment. With both dormitory-style and private rooms, Casa Areka Hostal Urbano caters to every traveler's preference.

The rooftop terrace offers breathtaking panoramic views of the city skyline, perfect for unwinding after a day of exploration. Socialize with fellow globetrotters in the communal lounge, or join the hostel's organized activities to connect with like-minded adventurers. The friendly staff is always eager to share local insights and insider tips to help you make the most of your Panama City experience. Casa Areka Hostal Urbano is more than a place to rest – it's a hub for cultural exchange and unforgettable memories.

Tucked away in Panama City, Hostal Villa Grande is a fun and welcoming spot designed for travelers who love comfort and connection. The air-conditioned family rooms come with private bathrooms, tiled floors, showers, and plenty of storage space to settle in with ease. More than just a place to sleep, Hostal Villa Grande brings people together with its lively bar, cozy garden, sun terrace, and shared lounge—perfect for mingling or relaxing after a day out.

There’s a shared kitchen for homemade meals, a games room for friendly competition, and even live music and evening entertainment to keep the good vibes rolling. With 24-hour front desk service, full-day security, free private parking, and a public bath, every detail is covered. Hostal Villa Grande also offers private check-in, a paid shuttle, and easy access to Panama City’s top attractions and local transport.

Mamallena Backpackers, one of Panama City’s original backpacker spots, has been offering friendly service and great value for over 15 years. Located in a traditional neighborhood, the hostel provides free secure luggage storage until 5 PM, allowing guests to relax on cozy patio sofas or explore while waiting for check-in.

Guests enjoy free BYO booze, tea, coffee, and even hugs. Mamallena Backpackers features a 24-hour guest kitchen, lounge areas with a ping pong table, and a swimming pool with a pool bar. An on-site travel agency can help with trips to the San Blas Archipelago and boat rides to Colombia.

Located 50 meters from the MiBus stop and a 5-minute walk from the Metro, it’s easy to get around the city. Nearby restaurants offer budget-friendly local food, and mini markets and a supermarket are close by. The fridge is stocked with cheap, cold beer for guests’ convenience.

Roxana, Marialina, and their team invite you to experience genuine Panamanian hospitality and enjoy your stay in Panama City.