Hostels Panama City

6 Best Hostels in Panama City for Backpackers in 2021

Panama City is now the financial hub of entire Latin America. This makes it the home of some of the finest shopping centers, restaurants, and boutique hotels in the area. With the growth in popularity thanks to the Panama Canal and its ocean transportation routes, as well as the various tropical attractions, Panama offers too much for you to miss out on visiting it.

Believe it or not, visiting this marvelous place does not have to be costly at all. It is currently attracting many of the young crowds who prefer the experience over the luxury. As a result, Panama City has become a spot with some of the best hostels in Latin America.

The hostels you’ll be learning about in this list are the best of them all.

Heading to Colombia as well? Check out Best Hostels in Cartagena

Luna’s Castle

HostelWorld (*8.9) (*8.3)

 Map Starts at ($15) for 8 bed-dorm

**prices are shown for weekdays in Mid-season (March)

Luna’s Castle is also located in the Casco Viejo district. This is a very relaxing, yet stylish hostel where young travelers love to stay. It overlooks the ocean, as well as the skyline of Panama City.

Bars, restaurants and monuments are at a walking distance. Good news, accommodation comes with free breakfast, tea, coffee, and non-stop WiFi connection.

El Machico

HostelWorld (*8.9) (*8.8) 

Map Starts at ($15) for 10 bed-dorm

**prices are shown for weekdays in Mid-season (March)

The second in our list is also a fun and funky hostel in the city. It is located in the center of Marbella, near Cinta Costera. This hostel comes in the form of a big villa with a terrace, a bar, and a lovely swimming pool. This is where guests spend their evenings and afternoons, with the extra benefit of meeting some great fellow travelers.

The best part about El Machico hostel in Panama City was definitely the people. Oh, how great everybody is there. There’s nothing a luxury hotel can offer me that is better than the friendliness of guests in hostels. I guess the environment makes people more relaxed and friendly, after all.

If you need some help to get around, the staff is available for all kinds of information. They will tell you what you need to see while in the area, and even organize some excursions, such as the popular one to San Blas.

Mamallena Backpackers

HostelWorld (*8.0) (*8.1)

 Map Starts at ($12) for 12 bed-dorm

**prices are shown for weekdays in Mid-season (March)

For all those who look for an intimate, clean and small hostel, this is a perfect choice. Compared to other hostels in the area, you could say that Mamallena is sized somewhere in the middle. This is a perfect size to allow the hosts to provide an individual and high level of service to all of their guests.

With a continuous quality of service and prices that don’t burn visitors’ pocket, everyone can afford to spend their Panama City trip in this hostel. The area where the hostel is located is close to public transport, but the best part of their location is all the budget bars and restaurants that surround it.

By staying in this hostel, you are one step away from budget meals and beverages, which makes it that much easier on your budget. And if you do want to move around, public transport is easily accessible.

If you like the coziness of the hostel, you can even enjoy some beer there. This is one of the very few properties that allow guests to even bring their own beverages to drink, or inviting friends over for some fun. There aren’t many hostels in the area where you can do this.

However, if you book there, remember that they aren’t allowing for non-stop parties. After all, the hostel wants to make everyone happy, which means that they have their set hours for peace and quiet. When the time comes to have fun and mingle, their terrace gets filled with people who socialize and have drinks together, while the lounge area is the perfect place to relax and watch some movies with other guests. In the garden, you can find lounges, hammocks, and even a BBQ where you can make some food and share it with guests on the huge group tables.

Hostel design provides perfect isolation of the sleeping area from all social areas. This means that you won’t experience noise distractions when you need your rest and other guest are still in the party mood!

Hostal Casa Areka

HostelWorld (*9.0) Map 

Starts at ($15) for 8 bed-dorm

**prices are shown for weekdays in Mid-season (March)

Located in the center of Panama City, right next to the ‘’Calle Uruguay’’, Hostal Casa Areka is the best location for those who want to explore the area. Right across the street from the hostel you will find a 24-hour supermarket and two grand malls for shopping. In the area, there are plenty of bars and restaurants and a bus stop that will take you to Casco Viejo and the Panama Canal.

If you’re visiting Panama City, look for Casa Areka. It’s the most central location you can find and amazingly, the cheapest and greatest money can buy. With a pool area and some mesmerizing palm trees, it will make your trip very enjoyable.

The hotel features a pool and BBQ areas, as well as a common room equipped with a pool table and other amenities. The kitchen is also available for use for all the guests, as well as equipped for the guests to be able to cook everything they need. Breakfast comes with the price, and there’s free Wi-Fi throughout the entire hostel.

In this hostel, you can get a bed in a dorm or a private room. All rooms come with air-conditioning, and the hostel also offers an extra-paid laundry service.

All of this makes for a fun and enjoyable experience combined with a friendly atmosphere and travelers from all around the world. The hosts are a Panamanian and his Swiss wife, who make all their guests happy with the help of the lovely staff.

Magnolia Inn

HostelWorld (*9.3) (*9.1)

 Map Starts at ($17) for 12 bed-dorm

**prices are shown for weekdays in Mid-season (March)

Magnolia Inn is known for its calming colors and the beautiful décor. Located in the historic part of Panama City, Casco Viejo, this hostel is set in a peaceful location full of great restaurants and a rooftop bar. Everything is within a walking distance.

In Magnolia Inn, you can spend your time in the greatly decorated room with air-conditioning, use their great Wi-Fi, or hang in the many social areas. The front desk has knowledgeable and extremely helpful staff members, making it possible for you to ask all kinds of questions and get help with your trip arrangements.

Magnolia Inn is one of the very few luxury hostels that you can stay in at a cheap rate, with the extra benefit of being so close to the center. The interior is marvelous and perfect for a stay in Panama City.

In this hotel, you can book a private room or beds in a shared room. The breakfast area is bright and comes with a fully equipped kitchen which can be used anytime. There’s even a ballroom!

Magnolia Inn is set in a colonial mansion from the 1900s, renovated completely to provide comfort, but still maintaining the colonial spark of the city. In the surrounding, you can see some of the most popular Panama City attractions such as the Presidential Palace, the National Theatre and the Metropolitan Cathedral.

Hostel Siriri

HostelWorld (*8.2) (*8.3) 

Map Starts at ($16) for 8 bed-dorm

**prices are shown for weekdays in Mid-season (March)

Siriri is a small hostel that can accommodate up to thirty guests. Located in the strict center of Panama City. This hostel makes it possible for visitors to see everything without having to use transportation.

If you choose this hostel, you’ll get many things for free. Enjoy access to the swimming pool, BBQ area, an outdoor patio with some chairs, public computer, air conditioning in all the rooms, non-stop hot water, Wi-Fi in the rooms, breakfast, poker and pool table, etc. For some fun and socialization. There are chill areas and a fully-equipped kitchen, as well as some common areas where you can watch TV. If you have some questions or need some help, their friendly staff is available non-stop, too.

Breakfast is included in the considerably low price and you don’t even have to worry about the taxes. Just a hint if you are visiting Hostel Siriri – ask for discounts if you are traveling in a group. You won’t believe how affordable it gets.

Getting to some of the most popular destinations in the city is very easy if you are staying in Hostel Sirriri. Balboa Seafront Boulevard is just four minutes away by foot, while there is only 2 km from the hostel to the Multiplaza Pacific Shopping Centre.

For some nightlife, you’ll be happy to hear that it takes only 10 minutes walking to get to the popular Uruguay Street.

This are all great spots to mingle and meet young travelers from all around the world.  Whichever you choose for your visit to Panama City, you won’t regret it.

Author’s bio: Terence Murray is journalist-freelancer and wide ranged professional content-maker for He is a real pro in academic essay writing but also loves to meet new people and talks with them about literature, photography and jazz music.