The 5 Best Hostels in Panama City: 2025 Edition

• Best Overall Hostel in Panama City – Magnolia Inn Casco Viejo
• Best Hostel in Panama City for Solo Travelers – Zebulo Hostel
• Best Cheap Hostel in Panama City – Hostal Casa Areka
• Best Party Hostel in Panama City – El Machico Hostel
• Best Hostel for Digital Nomads in Panama City – Selina Casco Viejo Panama City

Here it is – the crème de la crème of Panama City’s hostels, neatly split into travel niches just for you. Picking a place has never been easier, so you can get out exploring the city ASAP.

1. Magnolia Inn Casco Viejo – Best Overall Hostel in Panama City

• Dorm (mixed): From $21
• Private Room: From $76
• Address: Calle 8va and Calle Boquete, Casco Viejo, Panama City, Panama

Right in the heart of Casco Viejo, Magnolia Inn nails that sweet spot between charm and comfort, all tucked inside a beautifully restored French colonial mansion. It’s bright, spotless, and perfectly located – flanked by rooftop bars, fancy restaurants, and historic gems at every corner. The rooms are immaculate, and if you’re lucky enough to snag one with a balcony, those laid-back coffee mornings are all yours.

Why you’ll love this hostel:

1. Central Location
2. Friendly Staff
3. Sweet ‘ol AC

The vibe is social without feeling over the top, with a cosy common area that’s perfect for unwinding. The kitchen’s got you covered, and the staff are genuinely friendly and super helpful. And yes, the air-con is a lifesaver, giving you a much-needed break from that tropical heat.

Every morning at 9:45 am, they’ve got a free walking tour – spot-on for getting to know the city. Plus, free tea, coffee, and water refills all day long help stretch that budget (because we’ve all been there). Magnolia Inn is the perfect base for soaking up everything Panama City has to offer.

2. Zebulo Hostel – Best Hostel in Panama City for Solo Travelers

• Dorm (mixed): From $12
• Private Room: From $25
• Address: Calle Abel Bravo, Entre Calle 54 y Calle 55 Este, Panama City, Panama

From the moment you step through the door, Zebulo Hostel hits you with a warm, welcoming vibe. The staff are super friendly and always up for a chat, making it easy to connect with solo travellers in Central America. Its location is spot-on for exploring Panama City, close to the metro and everything you need nearby.

Why you’ll love this hostel:

1. Swimming Pool
2. BBQ Area
3. Social Vibe

Zebulo is perfect for solo travellers, with loads of chances to break the ice. The garden and outdoor terrace feature a badminton court, a BBQ area, and plenty of seating for hanging out. There’s even a cute little pool at the centre of the social scene, where you’ll find most of the action happening.

The place is clean, cosy, and well-maintained, giving you everything you need for a comfortable stay. The staff are attentive and make the self-check-in process smoooooooth as – ideal after a long day of travel. Bonus: they even accept Monero (XMR) as payment if you’re into crypto. The dorms come with solid air conditioning at night, ensuring a proper night’s sleep. Each bed has its own power socket, and there are lockers available for a few cents.

3. Hostal Casa Areka – Best Cheap Hostel in Panama City

• Dorm (mixed): From $12
• Private Room: From $28
• Address: Calle T. Duque y 55, frente al super 99, Paitilla, Panama City, Panama

Casa Areka is a solid choice for travellers looking to stretch their backpacker budget, packing in a decent breakfast and reliable Wi-Fi in the dorm rate. With hammocks and a chill pool in the communal area, you’ve got plenty of spots to unwind. There’s a cosy lounge to kick it back and make new pals backpacking Panama too.

Why you’ll love this hostel:

1. Tons of Cozy Spaces
2. Good Location
3. Fully Equipped Kitchen

Downstairs, you’ve got a spacious common area with a kitchen, comfy couches, and a pool table. The outdoor pool might not get much love, but it’s there if you want to take a dip. They don’t throw social events, but they can hook you up with a San Blas tour if you’re keen. The location is safe, and it’s just a short walk to a big shopping mall, which is super convenient. Rooms are spacious and come with solid AC, making them comfy for those hot nights.

The staff are genuinely friendly and attentive, making sure you feel right at home. Plus, you can enjoy a free pancake breakfast and make good use of the well-equipped kitchen, especially since cheap eats are a bit scarce in the area. Showers are roomy too, and each private room has a mini fridge which is a nice touch. Casa Areka has everything you need for a comfy stay, so you can kick back and enjoy your time in the city!

Is This the Best Backpack EVER???

We’ve tested countless backpacks over the years, but there’s one that has always been the best and remains the best buy for adventurers: the broke backpacker-approved Osprey Aether and Ariel series.

Want more deetz on why these packs are so damn perfect? Then read our comprehensive review for the inside scoop!

View on Osprey View on REI

4. El Machico Hostel – Best Party Hostel in Panama City

• Dorm (mixed): From $14
• Private Room: From $50
• Address: Av. 5a B. Sur, Casa 2, Marbella, Panama City, Panama

Tucked away in the swanky Marbella neighbourhood, El Machico is like a concrete jungle retreat right in the middle of the city. If you’re in the mood to party, you’re in luck – there are plenty of spots nearby, including the rooftop bars at Balboa Boutiques, just a five-minute stroll away, offering lovely ocean views. The place has a secure entrance, and the receptionist is on hand to let you in at any hour – even at 4 am – so no worries about late-night shenanigans.

Why you’ll love this hostel:

1. Great Location
2. Social Vibes
3. Open-Air Cinema

El Machico has everything the modern backpacker needs: a swimming pool, an outdoor terrace, and even its own bar. The team here are travel pros, always ready to share their local tips. Plus, there’s a resident dog named Bruno who’s more than eager to welcome you at check-in. And if that’s not enough, they’ve got an open-air cinema – how cool is that?

Rooms and bathrooms are spotless, and the fully equipped kitchen is a real bonus. You’ll find plenty of food options nearby, and they whip up pancakes every morning to kickstart your day. With a pool and solid A/C in the rooms, it’s all great value. The vibe attracts a cool and sociable crowd backpacking Panama, so you’re bound to make friends and feel right at home here!

5. Selina Casco Viejo Panama City – Best Hostel for Digital Nomads in Panama City

• Dorm (mixed): From $18
• Private Room: From $48
• Address: Calle 12 Este, En la esquina entre Avenida B y Calle 12, Panama City, Panama

As always, Selina comes through for digital nomads, offering the perfect blend of office and bed in one stylish package. Sure, there are swankier Selina hostels around Central America, but you know what you’re signing up for, and I’ve got no complaints!

Why you’ll love this hostel:

1. Daily Events Held
2. Social Vibes
3. Solid, Reliable Wi-Fi

The co-working space is really nice, giving you a great spot to power through a few hours of work before heading out to explore. The layout of the place is fantastic, with plenty of room to work and unwind in a quiet setting.

Located in a prime spot in the old quarter, the staff are friendly and everything you need is right at your fingertips. The social areas are a highlight, especially the rooftop, which offers stunning views of Casco Viejo along with a bar and dancing at night. The overall vibe is lovely and social, with super helpful staff to boot. Just a heads up – while the rooftop view is incredible, the average price for a drink can be a bit steep.

It might be pricier than other Panama City hostels, but that just means you should take full advantage of the freebies! The free walking tour and morning yoga are excellent ways to kick off your day – nothing like a bit of zen before diving into work. If you’re feeling cooped up, get out and stretch your legs around the old town. Plus, there are loads of cafes and co-working spaces just a short walk away for those seeking a change of scenery. All in all, another cracker of a hostel from the Selina chain.

Travel with peace of mind. Travel WITH a security belt.

Stash your cash safely with this money belt. It will keep your valuables safely concealed, no matter where you go.

It looks exactly like a normal belt except for a SECRET interior pocket perfectly designed to hide a wad of cash, a passport photocopy or anything else you may wish to hide. Never get caught with your pants down again! (Unless you want to…)

Hide Yo’ Money!

Haven’t found the right hostel for you yet? Don’t worry, there are plenty more options waiting for you. To make the search a bit easier, I’ve listed more epic hostels in Panama City below.

Mamallena Backpackers

• Dorm (mixed): From $11
• Private Room: From $30
• Address: ‘Casa 7-62, Calle Primera, Perejil’, Panama City, Panama

Mamallena Backpackers is a cracking choice for solo travellers on a budget in Panama City. This small, intimate hostel is all about that friendly, welcoming vibe and a super chilled atmosphere. The Mamallena crew hooks you up with a great guest kitchen, and you can bring your own booze, which means more cash for exploring the city.

Highly recommended in Panama City, Mamallena nails the balance between a party vibe at night when it’s time to let loose and a laid-back feel the rest of the time. It’s perfect for introverted solo travellers wanting to push their boundaries a bit!

Bodhi Panama City

• Dorm (mixed): From $17
• Private Room: From $40
• Address: Calle 50 D este Casa 5 B, Panama City, Panama

This place attracts some truly magical people! You’ll find plenty of amazing souls here, and the hostel itself radiates those boho chic vibes that I’m all about. The staff are incredibly positive, adding to the welcoming and social atmosphere. The location is spot on, right in the city centre and close to the Metro.

The rooms are spacious, and the Wi-Fi outshines that of any fancy hotel. The breakfast is filling, fresh, and best of all, free! The AC in the dorm keeps things nice and cool, and the pool is refreshingly inviting. Waking up by the pool surrounded by greenery is a real treat. What I love most about this place is how it effortlessly creates opportunities to meet new people. There’s no need for a dedicated social area; the entire first floor is designed to inspire connections and good times.

Eden’s Garden Hostel

• Dorm (mixed): From $17
• Private Room: From $35
• Address: SAN FCO,5A SUR LOS FUND. Ó AVE. 2DA. 12101 EDIF AL LADO DEL EDIFICIO ROCIO, Panama City, Panama

Eden’s Garden Hostel is a great pick in Panama City’s hostel scene. The pod-style dorm rooms feature big, comfy beds, and the place is clean and has everything you need for a good time. Plus, there’s a tasty breakfast included each morning – think eggs, toast, fruit bowls, strong coffee, and drinking water.

The location is fantastic, and while the host doesn’t speak English, he’s incredibly helpful and patient with my broken Spanish, even teaching me a few phrases! It’s excellent value for Panama City. We arrived super early from a night bus and were allowed to chill in the common area until our room was ready. If you have an early flight, he’ll even serve you breakfast ahead of time—talk about hospitality at its finest!

Hostel Villa Vento Surf

• Dorm (mixed): From $18
• Private Room: From $42
• Address: Main Road, in front of the bakery, Calle principal, frente a la panaderia, Santa Catalina, Panama

If you’re looking for a chilled-out place where drinking is the ‘done thing’ then Villa Vento Surf is for you. It’s super chill, has a lovely pool and good free pancakes for breakfast. Their Makanao Cafe team whip up a mean (and cheap!) selection of cocktails each night and serves up kick-ass empanadas until midnight daily. The combination of their swimming pool, perfect backpacker bar and bright graffitied walls makes Villa Vento Surf a suuuuper cool hostel in Panama City.

Panama Hat Hostel

• Dorm (mixed): From $10
• Private Room: From $30
• Address: Calle 47 Bella Vista, Calle Uruguay, Bella Vista, 00011 Panama City, Panama

The Panama Hat boasts its own bar and café, serving up delicious pizzas and ice-cold beers that hit the spot. It’s the perfect hangout for mingling with fellow backpackers over a slice (or two) and a drink at night. This charming and cosy place welcomes every guest like an old friend, making you feel right at home. The staff are incredibly friendly, and the location couldn’t be better – just a stone’s throw from shops and restaurants, plus a short walk to the hop-on hop-off bus route. For groups of friends travelling together, they also offer private dorm rooms, giving you that extra bit of space and privacy.

CulturaHumana Guesthouse

• Dorm (mixed): From $12
• Private Room: From $35
• Address: Calle 54 Este Casa 7, Bella Vista, Panama City, Panama

CulturaHumana Guesthouse is a hidden gem tucked away in the city’s bustling business district—a perfect launchpad for your Panama adventures. The garden feels like a slice of paradise, and the location is spot on. The staff are super friendly and always ready to lend a hand.

Breakfast is simple but hits the spot, with fresh fruit and pancakes to start your day right. The property itself is spacious, with plenty of chill-out areas and a pool for those lazy afternoons. The private rooms are HUGE, offering a comfy bed, a sofa for tossing your gear, and plenty of room to stretch out. Solid air conditioning keeps things cool at night, and the bathroom is roomy and stocked with all the essentials.

Hostal Villa Grande

• Dorm (mixed): From $11
• Private Room: From $30
• Address: Ave. Balboa Calle 39 Bella Vista House 21, Panama City, Panama

Hostal Villa Grande is a no-frills spot that ticks all the right boxes. Smack bang in the middle of the city, it’s got bus and metro stops just around the corner, loads of shops and eateries nearby, and the ocean just a five-minute stroll away. The kitchen is spacious and well-equipped, and the whole place is clean and cosy. They offer a mix of private rooms and dorm rooms, all with comfy beds, air con, and everything you need for a good night’s sleep. Plus, it’s pretty digital nomad-friendly – the WiFi’s solid, and there are a few spots where you can settle in and get some work done comfortably.

Panama House Bed & Breakfast

• Dorm (mixed): From $14
• Private Room: From $29
• Address: El Carmen, Bella Vista, Calle 1ra, casa 32, Panama City, Panama

This place is a dream for the penny pinchers – you’ve got dorms, cheap private rooms, and even tents if you’re feeling adventurous! Forget those boring “just passing through” airport hostels; this one’s got character. The facilities are solid, beds are surprisingly comfy, and the kitchen’s got all the gear you’ll ever need. Super chill vibes, ridiculously clean, and quiet enough to actually catch some Zs. Massive shoutout to Vanessa, the friendliest human around. Plus, you’re sorted with two metro stations nearby, so getting to or from the airport is a piece of cake. Insider tip: hit up the shawarma joint round the corner – it’ll change your life.

Loco Coco Loco

• Dorm (mixed): From $14
• Private Room: From $31
• Address: Marbella, calle margarita vallarino, casa 5b, Panama City, Panama

Loco Coco Loco offers guests the chance to hang out, meet and mingle in their own bar complete with a pool table. The team are super helpful and multilingual, they can converse in English, Spanish, French and Hebrew! They always go above and beyond for their guests so if you need anything don’t be shy, just holla! It’s also in a great location, within walking distance of restaurants, supermarkets and it’s a cheap Uber or taxi to local sights too. Loco Coco Loco is a classic Panama City backpacker digs with an on-point hostel vibe for an average price that is great.

Mochila & Art Hostel

Mochila & Art Hostel is basic but bang on. With a good selection of dorm rooms in a clean and bright building, as cheap and cheerful Panama City hostels go Mochila is on the money. Their dorm rooms have both fans and A/C to suit everyone’s preferences. Although Mochila doesn’t have a guest kitchen they are in a great neighbourhood for foodies! Within a short walk of the front door, you’ll find Chinese, Italian and local restaurants serving up a decent feed for a few dollars a pop.

Hostel Danicole

As one of the best budget hostels in Panama City, Danicole hasn’t skimped on service or cleanliness. Although the dorm rooms are basic they are more than ample for a traveller who is keen to get out exploring and just needs a place to crash. Danicole Hostel has a ‘fitness centre’ which consists of a punching bag and a few dumbells but defo enough to get a good training session in! They have a ping-pong and pool table too.

Luna’s Castle Hostel

Proclaiming to be the best hostel in Panama City bar none, Luna’s Castle is certainly up there and deserving of its spot on the shortlist! Luna’s Castle offers a cracking breakfast of pancakes and coffee, the perfect way to get fuelled up and ready to explore. Their bar, the Relic, is a true backpacker bar with truly backpacker-friendly drinks prices. There are hammocks and sofas throughout the building and a solid WiFi connection too, making Luna’s a great hangout for digital nomads. The Luna’s team are super lovely and you’re close to the old quarter!

Los Mostros

Back in 2014, Los Mostros was voted as the best hostel in Panama City, in fact, all of Panama and they haven’t let their high standards slip since. Los Mostros is one of the coolest Panama City backpacker digs as they have their own backpacker bar and swimming pool. It’s close to the airport, they’re only a 10-minute drive away. If you’re looking for a place to hang out in before you fly Los Mostros is the place for you, the team can help arrange an airport transfer for you.

Hospedaje Casco Viejo

Hospedaje Casco Viejo is a brilliant budget hostel in Panama City, offering cheap dorm beds throughout the year. Hospedaje Casco Viejo has a great rooftop terrace, perfect for sunbathing, complete with comfy sun loungers too. Museum of Colonial Religious Art, the Panama Canal Museum and the Presidential Palace are all within walking distance of Hospedaje Casco Viejo. If you’re trying to stick to the food budget be sure to pick up some veggies at the corner store and cook up and storm in the guest kitchen.

Dianes Hostel

Dianes Hostel is a little-known place in Panama City that ticks all the boxes. Offering comfy bunk beds in the dorm rooms and a few private rooms too Dianes Hostel has something for everyone. The free breakfast is basic but if you’re on a super tight backpacker’s budget you can’t turn down a free feed! Dianes Hostel is on the east side of Panama City near the Park Mar and Panama Viejo, the staff have limited English but always try their best to help give directions and make travel arrangements for their guests.

Getting Insured BEFORE Visiting Panama City

Unfortunately, things can go wrong when you least expect it. This is why good travel insurance is essential before you head on your trip to Panama City.

ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.

They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.

Here are some questions backpackers ask about Panama City hostels.

Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.

Product

Description

Don’t Let Snorers Keep You Awake!

Don’t Let Snorers Keep You Awake!

Ear Plugs

Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.

Check Best Price

Keep your laundry organized and stink free

Keep your laundry organized and stink free

Hanging Laundry Bag

Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.

Check Best Price

Stay Dry With a Micro Towel

Stay Dry With a Micro Towel

Sea To Summit Micro Towel

Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.

Check Best Price Check Best Price

Make Some New Buddies…

Make Some New Buddies…

Monopoly Deal

Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.

Check Best Price

Reduce Plastic – Bring a Water Bottle!

Reduce Plastic – Bring a Water Bottle!

Grayl Geopress Water Bottle

Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!

Check Best Price

Check out my definitive Hostel Packing list for even more top hostel packing tips!

How much does a hostel cost in Panama City?

It all depends on whether you prefer private rooms with an ensuite bathroom or a bed in a shared dorm. The average prices start at USD$14 for a bed in a shared dorm room, heading up to USD$15+ for private rooms.

How walkable is Panama City?

Casco Viejo, the Old Quarter, is super walkable with its narrow streets, colonial architecture, and tons of cafes, bars, and shops within easy reach. But once you’re out of the historic area, things get a bit trickier – sprawling roads, high humidity, and traffic make walking less appealing. Luckily, Uber will be your saving grace in those other pockets of the city so getting around isn’t too much of a challenge.

What are the best hostels in Panama City near the airport?

Panama House Bed & Breakfast is my top choice for a place to crash close to the airport as they’re only a 10-minute drive away.

Panama City’s secret is getting out, and for good reason. This place is a goldmine for adventure, culture, and seriously cool vibes. It’s on the verge of becoming a backpacker favourite, so if you want to experience it before it’s crawling with tourists, now’s the time to hop on the buzz.

Still not sure where to stay? My fave is El Machico Hostel; it’s got free breakfast, a pool and a cool buzzy vibe which I just LOVED when exploring the city.

But don’t just hang around the hostel – get out and dive headfirst into Panama City’s vibrant scene. Hit up the local food joints (trust me, the street food is on another level), explore the history-packed streets of Casco Viejo, and don’t miss out on some iconic festivals too.

And hey, when you’ve got your own insider tips, don’t be shy – share the love!

A couple of you lovely readers suggested we set up a tip jar for direct support as an alternative to booking through our links. So we created one!

You can now buy The Broke Backpacker a coffee. If you like and use our content to plan your trips, it’s a much appreciated way to show appreciation 🙂