From Casco to Canal: A Traveler’s Take on Panama City

From historic hat shops and rooftop cocktails to five-star stays and canal views, this traveler’s guide to Panama City covers what’s worth your time—and what to skip. Get honest reviews, star ratings, and tips for making the most of your Panama adventure.

Zack Wakefield

5/5/20255 min read

XNA to Panama: The Journey Begins

We started our trip from XNA with a pleasant surprise — a new Priority Pass Lounge. Breakfast was better than expected for lounge food, though it’s easy to imagine this spot getting crowded quickly. We connected through IAH in Houston, which continues to be a disappointment. They’ve now implemented mobile ordering everywhere, and drink prices are outrageous — $18 to $20 for a basic cocktail. The City of Houston still hasn’t figured out how to make their airport experience enjoyable. Plan accordingly.

The Panama Canal: A Must, But Manage Expectations

We visited the Panama Canal and watched a ship pass through. A pretty neat experience, but can be done pretty quickly. Be sure to check the time schedules as it boats only pass through for viewing earlier in the morning. The real highlight was the IMAX movie, narrated by Morgan Freeman — surprisingly great and worth the time. Go early or late to see a ship and avoid crowds. All in, we were in and out in about an hour. Worth doing.

Casco Viejo Highlights

Casco Viejo was absolutely amazing — we spent hours exploring its vibrant mix of restaurants, bars, and historic charm. Lots of history and old churches to see. We made a trip to the street with the hanging hats and bought an official Panama hat from the El Paseo Sombrero Hat Makers. This was a great experience. There are lots of Panama hats available in cheap souvenir stores, but this was a higher-end hat shop with true hat experts, and we enjoyed this experience. We also walked away with two new Panama hats and more education on how they're made and how they wound up in Panama. Only regret was the snow cones looked great, but I never got to.try one. Guess Ill have to go back...

Places We Stayed:

  • Sofitel Legend Casco Viejo – ★★★★★. Concierge Miriel was excellent. Helpful, attentive, and made the stay even more enjoyable. The Sofitel Casco Viejo is absolutely amazing — a true five-star hotel and hands-down the place to stay in Panama. It's walking distance to several great restaurants and overall one of the best hotels we've ever stayed in. Everything from the service to the atmosphere to the view was top-notch. It blends history and elegance in a way that makes you not want to leave. The pool is beautifully designed, relaxing, and more than makes up for the lack of quality beaches near Panama City.

  • The Westin Playa Bonita – ★★★☆☆ at best. Our stay here had a few hiccups. The property has great views and beachfront access, but overall felt like it had seen better days. Service was inconsistent, and there were several small issues that added up. The beach itself isn’t ideal for swimming or lounging — the sand is coarse, and the water can be murky. That said, the views are good — especially seeing ships lined up for the canal — but not great and nothing that will blow your mind.

Places We Ate:

  • Lo Que Hay – ★★★★★. Number 65 on Latin America’s best restaurants list. Absolutely book ahead — they managed to squeeze us in, but it was tight. This place is incredible. Flank steak and shrimp with lime rice were standouts. Sexy clams and ceviche were top-tier starters. One of the best meals I’ve had.

  • Azahar (Dinner) – ★★★★☆. Azahar is an upscale, trendy restaurant located in the modern financial district of Panama City — not Casco Viejo. It features a unique speakeasy-style entrance hidden behind a flower shop, setting the tone for a memorable evening. The filet mignon and sushi were both excellent, and the city views added to the ambiance. Our waiter, Alexis, delivered fantastic service that elevated the whole experience.

Places We Drank:

  • American Bazaar Bar – ★★★★★. Near the Costco and Vo Hotel. Very fun bar with an old-school Americana theme — airplane hanging from the ceiling, great Aperol spritzes, and excellent music.

  • Chupitos 507 – ★★★★½. Chupitos 507 is a wild, high-energy shot bar in Casco Viejo with over 500 creative shots and a vibe that’s pure fun. From graffiti-covered walls to flaming bartop shows, it’s the kind of place where the night takes on a life of its own. Tip: For a more chill experience, go when they open, grab a fire shot, and slip out before the full-on disco crowd rolls in.

  • Tantalo Rooftop Bar – ★★★★☆. We preferred Tantalo to Sauma. It had better energy, incredible views of the city, and a top-notch DJ. Trendy but not pretentious.

  • Element Cocktail Bar – ★★★☆☆. Pretty cool inside. Played house and trance music. Cocktails were interesting — no menu, they tailor the drink to your preferences. Drinks were expensive compared to the area.

  • Sauma Sky Lounge – ★★★½☆. Also trendy and fun with panoramic views, but the DJ wasn’t quite as good and drink prices were a bit steeper.

  • Café Coca-Cola – ★½☆☆☆. Skip it. No alcohol, and it’s right on the edge of a sketchier zone. Not worth the stop.

Places We Stayed:

  • Sofitel Legend Casco Viejo – ★★★★★. Concierge Miriel was excellent. Helpful, attentive, and made the stay even more enjoyable. The Sofitel Casco Viejo is absolutely amazing — a true five-star hotel and hands-down the place to stay in Panama. It's walking distance to several great restaurants and overall one of the best hotels we've ever stayed in. Everything from the service to the atmosphere to the view was top-notch. It blends history and elegance in a way that makes you not want to leave. The pool is beautifully designed, relaxing, and more than makes up for the lack of quality beaches near Panama City.

  • The Westin Playa Bonita – ★★★☆☆ at best. Our stay here had a few hiccups. The property has great views and beachfront access, but overall felt like it had seen better days. Service was inconsistent, and there were several small issues that added up. The beach itself isn’t ideal for swimming or lounging — the sand is coarse, and the water can be murky. That said, the views are good — especially seeing ships lined up for the canal — but not great and nothing that will blow your mind. Still, the pool area was nice and the beach setting is tough to beat if you're looking to unwind.

Transportation Tips:

Use Uber in Panama City — it’s incredibly cheap and reliable. The airport is about 30 minutes from Casco Viejo and not a bad ride at all, although we didn’t travel during rush hour.

Final Thoughts:

Panama surprised us. It’s a unique mix of old-world charm and modern energy. I would highly recommend Panama City for a 3 or 4 day weekend. We found cheap flights and although not inexpensive, the Sofitel was out of this world. Our only slight letdown was the beach experience at the Westin, but the good of the whole trip far outweighed the bad.

We would definitely go back to visit Panama City — the food, culture, and city energy made it worth the trip. However, it’s not a beach destination. If you're coming to Panama for beaches, be prepared to travel 3+ hours to reach places like Bocas del Toro or the San Blas Islands.

One more tip: be sure to apply bug spray regularly while in Panama. Although it won’t slow down your good time, bug bites will definitely appear if you forget to apply it.