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"Hotel" isn't the only tag you'll find in Panama: hospedaje, pensión, casa de huespedes, and posada also denote somewhere to stay. Hotels and posadas tend to be higher-end, whereas hospedajes, pensiones, and casas de huespedes are sometimes smaller and family run. A residencial might be a by-the-hour sort of place.
Resorts: Big international chain hotels (Westin, Radisson, Marriott, InterContinental, and more) are found throughout Panama City. They have rooms and facilities equal to those at home, but can lack a sense of place. If five-star luxury isn't your top priority, the best deals are undoubtedly with mid-range local hotels.
Rentals: Short-term furnished rentals aren't common in Panama. Villas International offers several premium villa and apartment rentals. Sublet.com and VRBO deal mostly with modest apartments, often as cheap as $700 a week.
Bed-and-Breakfasts: In Panama the term B&B is frequently extended to luxury hotels that happen to include breakfast in their price. Indeed, these make up most of the pickings at Bed & Breakfast.com and BnB Finder. Ah! Panamá includes a few homier mid-range establishments.
Eco-Lodges: Found throughout the Guna Yala and the Darién, eco-lodges can be luxurious, but most are rustic, and all are way off the beaten path, so plan on staying a few nights. The term eco-lodge sometimes describes a property in a rural or jungle location rather than somewhere that is truly sustainable. The International Ecotourism Society has online resources to help you pick somewhere truly green.