3 Best Hotels in The Canal and Central Panama, Panama

This attractive hotel and spa, built in the Tuscan style—stone walls, arched doorways, and barrel-tile roofs—has some of the nicest rooms in El Valle. In a pastoral setting at the foot of Cerro Gaital, the rooms are spacious and nicely decorated, but the architects went overboard on the small Tuscan windows, which shortchange guests on the views. Spring for a superior or deluxe room, which have bigger windows. All rooms have the same amenities as the country's top hotels. The lawns and pool are lovely, and the "Irish Pub," which doubles as a restaurant, has tables outside, though the best restaurant in town—La Casa de Lourdes—is next door. The spa has an array of treatments, and a Jacuzzi and sundeck on the roof. A 2013 expansion included new guest rooms, a second heated swimming pool, and a second restaurant, which serves paella and tapas.

If you have to spend a night in Colón, this is your best option, since it's next to the Colón 2000 cruise port, with its shops and restaurants, in one of the safest parts of town. The rooms are pretty standard, but well-equipped; be sure to get a port view. The lobby has a large restaurant and a lounge, and there are several more dining options next door. Most of your fellow guests will likely be Latin American business travelers, who have come to make wholesale Free Zone purchases. All in all, it's a safe, dependable hotel with a good business center and buffet breakfasts.

This dive resort owned by Scuba Panama, the country's biggest dive company, has decent rooms in a lovely coastal setting at very low rates, making it a good option for budget travelers who can do without a lot of service. Accommodations range from dorm rooms to bungalows; the second-floor "single" rooms—small but colorful, with ocean views and narrow balconies—are comfortable enough, but spring for a cabaña (bungalow), which costs just $10 more, and offers much more space and privacy. Large trees shade the ample grounds, and there's a gazebo atop some boulders over the water. The resort has a full dive center and inexpensive trips like snorkeling to Isla Mogotes. The tiny, open-air restaurant serves breakfast and a limited menu, but there's better food down the road.