4 reviewed party hostels · from €7.66/night · Hostelworld rated
Casco Viejo is where Panama City’s nightlife kicks off, and it’s all within walking distance of the best party hostels. Mamallena Backpackers sits on the edge of this district, putting you five minutes from streets like Avenida Central, where bars spill onto the pavement and rooftop terraces overlook the ocean. The hostel scene here is small but social: expect group dinners, pub crawl meet-ups, and a mix of travellers who are either heading out or nursing a hangover. Selina Casco Viejo, another top pick, has its own bar and live music nights, so you can start the party without leaving the building. Taxis to nearby clubs cost about $4, but most nights, you won’t need one.
Rated by Hostelworld score · Prices per dorm bed per night
Hostel Casa Areka is tropical heaven for backpackers. An amazing pool with a great area is a favourite part of the guests. The garden is a nice spot for relaxing, but also for crazy BBQ evenings. The common room has plenty of social games available, including the pool table.
Hostal Villa Grande in Panama City is a party gem with a buzzing terrace hosting cracking barbecues. Its lively stereo and pool table spark electric vibes, steps from Uruguay Street’s nightlife. Friendly staff fuel the fun with a social atmosphere, making it a gem for an epic, party-packed adventure in the city’s heart.
Fun social hostel with friendly staff. The hostel features a huge pool and outdoor cinema. There is also a cool bar with a wide selection of drinks and great discounts for students. Tasty fresh breakfast is served every morning, along with all-you-can-eat homemade pancakes.
Mamallena Backpackers is a cool party hostel with plenty of free activities for guests to mingle. The hostel features an amazing pool with a great outdoor area where you can meet other travellers. Free breakfast included, as well as the coffee and tea during your stay.
Organised nights out with a local guide
A guided walking crawl through Casco Viejo’s best bars, including stops at Mamallena Bar and La Santa. The crawl includes free shots, drink discounts, and entry to one club. Groups are small: usually 10-20 people: and the guides keep the energy high with drinking games.
This crawl visits four bars in Casco Viejo, with a mix of rooftop spots and underground venues. Each stop includes one free drink, and the tour ends at a club with free entry. The crowd is mostly backpackers and digital nomads, and the guides hand out shot vouchers along the way.
How Panama City's nightlife zones break down
The historic heart of Panama City, with cobblestone streets, colonial buildings, and most of the nightlife. Avenida Central is the main drag for bars, while Plaza de Francia offers quieter spots to sit with a beer. It’s compact: you can walk from one end to the other in 20 minutes.
A short taxi ride from Casco Viejo, Marbella is where you’ll find high-rise apartments and oceanfront bars. It’s quieter than Casco Viejo but has a few late-night clubs and seafood restaurants. The Multiplaza Mall is here if you need a break from hostel life.
Home to the city’s glitziest clubs and upscale bars. It’s where locals go for a big night out, so expect dress codes and higher drink prices. The area is safe but not as backpacker-friendly: stick to Casco Viejo if you’re on a budget.
Where the hostel pub crawls end up, and where to go on your own
A two-floor club with reggaeton on the ground and electronic upstairs. The crowd is mostly locals and backpackers, and it gets packed after 1 AM. Entry is $10, which includes one drink. Dress sharp: bouncers turn away flip-flops and tank tops.
This bar at the Tantalo Hotel has the best views in Casco Viejo, with the skyline lit up at night. Cocktails cost $9-12, but happy hour (5-7 PM) knocks them down to $6. It’s small, so arrive early to grab a seat. The music is a mix of lounge and electronic.
A dimly lit speakeasy with craft cocktails and board games. It’s a great spot for a chilled pre-game or a late-night drink if you’re avoiding the clubs. The menu changes weekly, but the Old Fashioned is always a safe bet. Expect to pay $10-12 per drink.
Attached to Mamallena Hostel, this bar is the go-to for backpackers. Beers cost $2, and shots are $1 during happy hour (8-10 PM). They host pub crawls every Thursday and Saturday, which include free shots and entry to La Santa. The crowd is young and international.
A five-minute walk from Mamallena, this rooftop bar offers ocean views and a relaxed vibe. Beers are $3-4, and the mojitos are strong. It’s popular with digital nomads during the day and backpackers at night. Live DJs play on weekends.
A hidden bar behind an unmarked door in Casco Viejo. Inside, it feels like a house party with a dance floor. The music is a mix of salsa, reggaeton, and electronic. Entry is free before midnight, but drinks cost $8-10. Get there early: it fills up fast.
If you want to dance salsa, this is the place. Lessons start at 9 PM, followed by a live band at 11 PM. Entry is $10, which includes one drink. The crowd is a mix of locals and travellers, and the energy is infectious. No heels for women: you’ll be dancing on a concrete floor.