7 Best Hotels in The Canal and Central Panama, Panama

This private retreat across the bay from Portobelo offers a splendid mix of ocean views, tropical nature, abundant art, friendly service, and fine dining. Accommodations are in four small houses with colorful decor that includes the work of local artisans, as well as such modern amenities as an LCD TV, iPod dock, and Wi-Fi. The houses surround a pool and a bright gazebo that serves as restaurant, gallery, and lounge. The cuisine is a fusion of Caribbean and Continental flavors, with a menu that changes daily, and accommodates guest needs. Large families, or small groups desiring privacy can rent the Casa Grande, up the hill, which has three suites, a full kitchen, and a dining–living room. Basic spa services are available, as are excursions to nearby beaches or colonial fortresses, and fishing, kayaking, hiking, snorkeling, and scuba diving. Folk dancing performances can be arranged, as can the chance to sculpt or paint with a local artisan; the property's wood workshop makes beautiful furniture for the hotel as well as to sell. The restaurant is open to the public for lunch (with reservations only) and day passes are available for nonguests ($120).

Nestled in the forest overlooking the boulder-strewn Guayabo River, this lovely lodge is a mecca for bird-watchers and other nature enthusiasts. Its attractions are honeycreepers, euphonias, hummingbirds, and the other 300 bird species found in the surrounding forest. The sister lodge of the Canopy Tower (weeklong packages combine the two lodges), in Soberania National Park, guest rooms here are bright and spacious, with stylish slate floors, concrete bathrooms, and wide balconies that overlook the river and forest. Meals are served family-style in an airy restaurant-lounge with a self-service bar. There is a good natural-history library, but not one TV to be found. Though rates are steep, they include three meals, and wine with dinner. There is a minimum two-night stay, and with a three-night minimum stay, you get a free introductory nature/bird tour (otherwise all tours cost extra).

Occupying a former U.S. Army radar tower deep in the rain forest of Soberanía National Park, this lodge caters almost exclusively to serious bird-watchers and natural history enthusiasts. Rooms are small and basic, with cement floors, painted metal walls, ceiling fans, and tiny bathrooms, but they have big windows with views of the lower canopy. Suites are roomier, with hammocks and decent-size bathrooms. Guests tend to spend most of their time in the forest, or in the fourth floor dining room/lounge/natural-history library, which has walls of windows that let you look right into the forest canopy. The view from the rooftop deck, just above the treetops, is even more impressive. Three meals per day and one nature tour are included in the price. Additional tours are available for purchase. The minimum stay is three days.

Panoramic views of the Chagres River and surrounding rainforest, abundant wildlife, a selection of outdoor excursions, and amenities such as a spa and massive pool make this hotel a great place to experience the rain forest without sacrificing comfort. The lobby is impressive, with giant windows overlooking the jungle panorama, life-size crane sculptures hanging overhead, and a stream cascading through a three-story tropical atrium. The bright guest rooms have wicker furniture, hammocks, colorful tropical decor, and balconies. Junior suites, with two additional queen beds in a loft, are an option for families. Garden views are disappointing—stick with rooms with numbers in the 300s or 400s. Activities include bird-watching, an aerial tram, a boat trip to Monkey Island, kayaking, and fishing. Day passes for nonguests cost $65 and include drinks, breakfast, lunch, and access to the swimming pool (nature tours cost extra).

Formerly the Bristol Buenaventura, Panama's loveliest beach resort combines elegant rooms and Spanish colonial architecture with an 18-hole golf course and a splendid stretch of sand. The lobby and main buildings resemble a colonial palace, with a chapel across the plaza. The sumptuous guest rooms have hardwood floors, four-poster beds, marble bathrooms with a shower and a tub, and the amenities you expect from a luxury hotel. Garden rooms open onto terraces lined with tropical greenery; the rest have balconies with ocean views past the canal, pool area, and residential nieghborhood. It's a short walk or golf-cart ride to the handsome El Faro Club House, with a restaurant and pool on the wide, palm-lined beach. Outdoor activities include the par-72 golf course ($115 for guests playing 18 holes or $70 for 9 holes on weekdays, $135/$80 weekends), tennis, deep-sea fishing, snorkeling, horesback riding, and various other tours. The Tamarindo Restaurant ($$$–$$$$) serves excellent Latin American-Mediterranean fusion cuisine.

Panama's largest, and one of its most attractive, beach resorts offers good deals outside of the peak season, but also the food and service problems typical of all-inclusive resorts. Its 852 rooms are in 50 four-story buildings scattered along 2 km (1 mile) of beach, amidst luxuriant grounds. They are bright and colorful, with large bathrooms and balconies or terraces. Few have ocean views—it's worth paying extra for one. The resort has an 18-hole golf course, 10 pools, eight restaurants, 11 bars, a dance club, casino, game room, spa, gym, and legions of beach chairs. Meal options range from massive buffets to restaurants specializing in seafood, Japanese, Thai, or Italian cuisine, but don't expect memorable meals. Free activities range from kayaking and tennis to volleyball, but golf, fishing, snorkeling and other tours are extra.

Rooms in the upper floors of this stately resort are steps away from the beach, and have great views of a cascading series of pools and the glistening Pacific. The design of the resort's six-story building was inspired by the Tivoli Hotel, which was the Canal Zone's premier hotel in the early 20th century. Its well-equipped, spacious rooms have Juliet balconies with views of the pools, gardens, and sea; only suites are on the beach. Public areas are attractive, but it's more compact than the other beach resorts. There is a tennis court, game room, clubs for children and teens, a 24-hour gym, four restaurants, three bars, a dance club, and a Sheraton Club lounge for guests staying in premium rooms.