Las Clementinas is another Casco Viejo charmer, in a fully-revamped colonial building in the most beautiful part of town. They have gone for understated elegance and style here, and have definitely succeeded. Furnishings are either original antiques or perfect replicas. Las Clementinas also has a bar and cafe with great food.

The capital's most elegant hotel is a five-star class act, complete with marble and hard wood furnishings, abundant fresh flowers and a 24-hour butler service. The Bristol contains 56 intimate rooms, a great restaurant and a gym.

A luxury, beachfront hotel with six restaurants, a full-service spa, business centre, kids club and three infinity pools, each kitted out with a swim-up bar. Located approximately 20 minutes outside of the city centre, flanked by rainforest, the resort has 611 luxury rooms and suites, many offer views of the Pacific.

This is one of Panama City’s top-end boutique hotels, located in one of the city's most romantic spots. Each of the 33 rooms are individually (and impeccably) decorated. The difference here is in the details right down to the antique furniture that graces each handsome room. Beautiful and classy, with rooms and suites available at rather high prices but you won’t be sorry.

Centred on a palm tree-fringed swimming pool, this sophisticated Panama City hotel is an excellent choice if you're searching for low-key luxury. Spacious rooms offer modern furnishings and sweeping views of the Panama City skyline. All rooms have a mini-bar and cable TV, and there is a surcharge for the Wi-Fi which is available all over the hotel.

A modestly-sized boutique hotel in Downtown Panama City, Toscana Inn comes equipped with air conditioning and Wi-Fi in every room. Café Los Girasoles restaurant serves up Panamanian cuisine for dinner and a complimentary buffet-breakfast spread in the morning.

Situated in Panama City's Marbella district, this lively hostel fosters a laid back atmosphere with courtyard swimming pool, open air cinema nights, pool games and a small bar.

One of the most popular guest houses in the Casco Viejo, this place is located in one of the beautiful colonial buildings and provides internet access, fully equipped kitchen, TV room and lovely terrace overlooking the Old Quarter. There is a disabled toilet, free towels and linen. Always popular, always welcoming.

Brilliant and bonkers, Luna is a hostel extraordinaire, with both dorms and private rooms at great rates. It provides all-you-can-eat pancake and banana breakfasts, guitars lying around for a strum and the most astonishing trust policy ever: open entrance, unlocked beer fridge and free leftover food. Another reason it’s good to know about Luna is that the hostels organise the best tours and transport.