Contents
Why stay in a hostel in Casco Viejo?
Casco Viejo is primarily a boutique hotel neighbourhood — the gentrification of the past 15 years has pushed up property costs and made budget accommodation scarce. But the hostels that do exist here are exceptional. Staying in the neighbourhood means waking up to cobblestones and cathedral bells, not a taxi-ride away from the experience you came for.
The free colonial walking tour departs daily at 10am from Plaza Herrera — right in the middle of the neighbourhood. Staying in Casco Viejo means you can roll out of bed and be on tour in five minutes.
💡 Budget tip: Our free colonial walking tour is the best value activity in Panama City — and it's completely free. Most hostel staff will book you in when you check in. Just ask.
The best hostels in Casco Viejo
Selina's Casco Viejo location is the brand's best property in Panama — a converted colonial building with a rooftop pool, co-working spaces, a bar, and a restaurant on the ground floor. The dorms are clean and well-maintained with individual lockers, reading lights, and power outlets at each bed. Private rooms are also available from around $75.
The rooftop pool alone is worth it — it has views of the bay and the Miraflores Bridge that rival anything in the boutique hotels. Popular with remote workers as well as backpackers, which gives it a slightly older, more mixed demographic than typical hostel crowds.
Luna's Castle is the OG Casco Viejo hostel — it's been here since before the neighbourhood was gentrified, and it has the character to prove it. Located in a crumbling but atmospheric colonial building on Avenida B, it has rooftop terraces, a bar, communal kitchens, and the kind of lived-in charm that newer hostels can't manufacture.
It's the cheapest legitimate hostel in the neighbourhood and consistently well-reviewed for its social atmosphere. The staff organise regular events, bar crawls, and activities. Not the place for a quiet night's sleep on a Saturday — but exactly the place if you want to meet people and explore Casco Viejo with others.
Several family-run guesthouses in Casco Viejo offer private rooms at prices below the boutique hotels. These aren't hostels in the traditional sense — no dorms — but they offer the kind of personal attention and local knowledge that no chain property can match. Look on Booking.com for "guesthouses" in Casco Viejo, or search Airbnb for private rooms in colonial buildings.
This is often the best option for solo female travelers who want the neighbourhood location without the party-hostel atmosphere. Female-only rooms are not commonly available in the neighbourhood — ask ahead if this is a priority.
Near Casco Viejo: budget alternatives
If everything in Casco Viejo is fully booked (which happens in high season — December to April), the neighbouring areas offer reasonable alternatives within a 10–20 minute Uber ride:
- El Cangrejo — Panama City's "backpacker district" has the highest concentration of budget hostels. Quiet by night, convenient by day. Uber to Casco Viejo costs $3–5.
- Calidonia — Closer to Casco Viejo than El Cangrejo, slightly edgier, but with some good budget options and faster access to the historic quarter.
- Marbella — Business district with occasional budget-friendly apartments available short-term. Cleaner and quieter than Calidonia.
Booking tips for hostels in Casco Viejo
- Book ahead in high season (December–April). Selina and Luna's Castle both sell out, especially on weekends.
- Check noise levels — Casco Viejo's streets carry nightlife noise on Friday and Saturday nights. Luna's Castle and Selina both have bars on-site. If you're a light sleeper, ask for an interior room.
- Store valuables securely — All hostels have lockers. Bring your own padlock or buy one at the airport for $3–5.
- Book the free walking tour the day you arrive — most hostel receptions will do it for you. It's the best first-day activity in Panama City and it's completely free.
The free tour departs right from Casco Viejo
Plaza Herrera, 10am daily. Walk out of your hostel and into one of the best free walking tours in Central America. No payment on the day.
Reserve Your Free Spot →