Rated a top hostel in Central America — a colonial mansion in Casco Viejo with dorm and private rooms, a rooftop terrace, and a lively social scene. The location in the historic quarter at hostel prices is the best accommodation value in Panama City.
Why We Chose It
Luna's Castle has been the reference hostel in Panama City for over a decade — a beautiful colonial building in Casco Viejo with a rooftop terrace, good communal spaces, and the kind of staff knowledge that helps budget travelers navigate the city and onward connections to Bocas del Toro, Colombia, and beyond.
What Stands Out
- Rated among the best hostels in Central America
- Set in a colonial mansion in Casco Viejo
- Rooftop terrace
- One of the best budget addresses in the historic quarter