Best Budget Hostels and Bed & Breakfasts in Panama City

Panama House Bed and Breakfast in Panama City, Panama

Great Hostels for Budget Travelers...

The best low-budget hostels close to our Spanish School in Panama City...

  • Panama House Bed & Breakfast: a warm and traditional hostel with a latino family vibe conveniently located just across the street from Habla Ya Panama City. Formerly known as Casa del Carmen, this hostel has 2 dorm rooms, 8 private rooms, and a budget restaurant on site.
  • Baru Lodge: a brand new Bed & Breakfast with 9 modern private rooms with queen beds and private bathrooms (some with a kitchen area as well), conveniently located on the road behind Habla Ya in Panama City.
For a complete list of hotels in Panama City close to us click here. All of our lodging options in Panama City are in El Carmen, El Cangrejo, Obarrio, Marbella or the Financial District areas. This means that within a 10km radius you'll have access to hundreds of restaurants, shops, cafes, casinos and almost any other service that you might need. Most of our recommended lodging options are located within walking distance to our Spanish school in Panama City (1 to 35 minute walk, 5 - 10 minute taxi ride, or 1 metro (subway) stop away (5 minutes) and then a 5 - 10 minute walk). Only Habla Ya Spanish Students are eligible for the special rates for extended stays that appear on this page when they make their reservation through us. These special rates are offered to our students due to the amount of traffic that we generate for these hostels.

Panama House Bed & Breakfast

Private room at Panama House Bed & Breakfast
Literally Just Across the Road from Habla Ya

Panama House B&B is a cozy hostel located right across the street from our Spanish school. As an Habla Ya Spanish student, you couldn't wish for a more convenient location, and just as with our Spanish school, you'll benefit from being within a stone's throw of Panama City's heart, yet on a road that is quieter than the main avenues of the City.

Being on the border of El Cangrejo and El Carmen neighborhoods gives you access to loads of restaurants, shops and bars, only a 10 - 15 minute walk away. If you enjoy hanging out at pubs to meet people or prefer to experience a different restaurant every night of the week, this is exactly the area that you're looking for. Benito Juarez Park is just around the corner as well so if you want to stay fit or catch some fresh air, it's only a couple of blocks away.

Dorm room at Panama House Bed & Breakfast

The Via Argentina Metro (Subway) Station is only a 5 minute walk away (Estacion Fernandez de Cordoba Metro Station is about a 10 minute walk) and Via España, Panama City's main artery is only 1 block away, from where you can catch busses to almost every place in Panama City as well as to the National Transportation Terminal where you can travel to almost any part of the country.

Dorm and Private Rooms + Amenities

Be it a dorm or a private room, this hostel has everything you need for a long term stay. Each dorm room has 6 beds. When selecting a private room, you can choose from having your own bathroom (double or triple rooms with queen beds) or sharing one if you're looking to save a bit (single or queen bed). Contrary to the hostels in Bocas del Toro, this one has bathrooms with hot water so being on a budget doesn't mean that you won't be able to enjoy a relaxing shower. The private rooms are arranged with either one twin bed or one double bed. All rooms include a rack for hanging clothes, a bedside table, television, air conditioner, and a safe box.

Breakfast at Panama House Bed " Breakfast

Daily breakfast is served from 7:30 a.m. to 10:00 a.m. (eggs, bread/toast, fresh fruit, cereal, coffee, tea, and juices). The kitchen has a large fridge and is completely equipped with everything you'll need to prepare the rest of your meals, or if you prefer to take a break from cooking, an onsite restaurant serves cheap meals for less than $5 (and serves drinks). Taking care of your laundry isn't a big hassle as there are several washing and drying machines that work with coins.

Wifi Internet is available throughout the entire hostel, as well as several computers. Places to socialize include the living room with Cable TV, as well as the backyard terrace and garden with barbecue.

Friendly Local Atmosphere
Friendly environment at Panama House Bed & Breakfast

The hostel itself has a very warm traditional latino family vibe, which besides its location is the other main reason we chose Panama House Bed and Breakfast as a budget accommodation option for our Spanish students. It somehow has the feeling of a home stay (but with more privacy) as the owners and the staff are all Panamanians which will help you to easily practice your Spanish everyday after class. With over 10 years of experience in the hostel industry (for Panama that's a lot since tourism didn't start that long ago), Panama House offers our guests a high standard of customer service.


  Per Night 1 Week 2 Weeks 3 Weeks 4 Weeks
Bed in a Shared Room $15 $105 $210 $315 $420
Private Room Shared Bathroom
(Single Occupancy)
$35 $235 $465 $680 $885
Private Room Shared Bathroom
(Double Occupancy)
$45 $300 $595 $870 $1135
Private Room with Private Bathroom
(Single or Double Occupancy)
$55 $370 $725 $1065 $1390

* Please note: prices are in US Dollars. Rates DO NOT INCLUDE Panama's 10% Hotel Tax. Each extra person pays $10 USD per night in private rooms. Kids 5 years and under stay for free with adults. Reservations require a valid credit card. No shows and cancellations incur in a 1 night penalty fee (at the normal rate), with the exception of weekly or monthly bookings that will have a 50% penalty of the entire stay.

Just a 1 minute walk from Habla Ya Spanish School in Panama City, Panama House Bed & Breakfast is literally just across the road from Habla Ya Panama City. The physical address is 1st Street, El Carmen, House #32. If you need to reach Panama House B&B (formerly known as Casa del Carmen), ask the taxi driver to take you to El Carmen neighborhood, on the street behind Exedra Books. You'll find Panama House B&B almost at the end of 1st Street on your right.
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Baru Lodge

Double Room in Baru Lodge in Panama City, Panama
Modern, Brand New & Convenient

Baru Lodge is also extremely convenient in terms of location as it's located on the street just behind Habla Ya Panama City. In just 5 minutes you can walk from your very own bedroom to your classroom at Habla Ya and be sat right in front of your Spanish teacher without having to deal with Panama City's traffic (so no excuses for being late!).

Of our budget lodging options, Baru Lodge is certainly the one with the most elegant feel as its architecture is very modern and with a natural feel. And did we say it's brand new and was recently renovated with plenty of attention to detail?

Elegant Bedrooms
Bathroom at Baru Lodge in Panama City, Panama

9 comfortable rooms with queen beds that have superb mattresses, modern private bathrooms with hot water, air conditioning, air purifier with individual controls, cable television, mini-fridge, wireless internet and continental breakfast are just some of the modern perks that you'll be able to enjoy.

The double rooms, which have two queen beds each, also include a very advantageous kitchenette area with a microwave and a sink for doing your dishes. This setup certainly is better suited for longer stays as you can stock up and store edibles that don't need to be cooked (or that can be microwaved) and you'll also be able to enjoy that take away or meal from one of the nearby restaurants that you weren't able to finish the other night. A twin bed can be added to the double rooms to accommodate an additional guest. Guests staying in other rooms can also use a microwave available in the common area as well as plates, dishes and cutlery.

Garden Area at Baru Hotel in Panama City, Panama

What we really like about Baru Lodge are its rooms and bathrooms. They are more at the level of a mid-range lodging option and their rates represent unbeatable value for what you get.

Nice Facilities & Superior Customer Service

The owner at Baru Lodge is very hands on and he has instilled great customer service skills to his staff. They take a lot of pride in making your stay a great one.

You also can't beat their backdoor garden area with abundant greenery and quietness which gives you the unique peace and tranquility that you need to study Spanish despite being in the middle of bustling Panama City.


  Per Night Per Month
Standard Room Single Occupancy $58 $1555
Standard Room Double Occupancy $68 $1835
Double Room Single or Double Occupancy $78 $2105
Suite Single or Double Occupancy $78 $2105

* Please note: prices are in US Dollars. Rates DO NOT INCLUDE Panama's 10% Hotel Tax. Price per night for extra person is $10 + 10% hotel tax (children under 12 years can stay with their parents for free). Months are considered 30 calendar days. A credit card is required to make the reservation and you'll be charged payment in full. Cancellations can be made with up to 30 days in advance with no penalty (entire amount will be refunded). Cancellations made 30 days or less prior to arrival will be charged the full basic room rate of the 1st night + 10% tax (the rest will be refunded), with the exception of monthly bookings that will have a 50% penalty of the entire stay (the rest will be refunded). Cancellations made within 3 days will be charged 50% of the entire stay.

Just a 4 minute walk (0.3km) from Habla Ya Spanish School in Panama City, Baru Lodge is literally on the street behind Habla Ya Panama City. The physical address is 2nd Street (Calle Ricardo Miro), El Carmen, House H-7. If you need to reach Baru Lodge, ask the taxi driver to take you to El Carmen neighborhood using the street that leads you to the Benito Juarez Park from Via Brasil. Once you reach the corner where park starts, take a right, and take that road which will start bending to your left. Baru Lodge will be to your left once the street begins to straighten out.
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