Until recently, it was easy to find a room at a hotel in Panama. In the old days you could just show up with your bags on the day of arrival and get a better rate than calling ahead with a reservation. Over the last couple of years things have really changed.

With all the media hype about the Panama Canal expansion and Panama becoming the number one retirement haven, suddenly everyone and their dog was on their way to Panama to get a slice of the action and see what all the fuss was about.

Venezuelans have also been pouring in to check out Panama as a place to escape Chavez’s severe socialism with their families, their businesses and their money. We are not talking about a handful of Venezuelans, we’re talking thousands.

In fact, travel agents and visitors alike have been  complaining that there are literally no available rooms in the major five-star hotels and even the dodgiest $15/night lodging in Caledonia (a somewhat rundown portion of central Panama City) are all booked up during the high season.

The result is that room rates have doubled over the past two years. Business executives and prospective retirees are often caught scrambling last minute, hoping for a cancellation.

Above: Located in one of our favorite boutique resorts, this loft rents nightly and is just steps from a beautiful beach.

The Internet has made business really easy for the large chain hotels with their fancy web sites and corporate connections to travel agencies worldwide. But there are many hotels in Panama that offer great rates and excellent service but are not as easily found by punching “panama hotel” into your favorite search engine.

For this reason, you’ll find the list of hotels outlined in Chapter 4 of the Panama 101 – E-Book very useful. This list applies not only to Panama City, but to some of Panama’s other destinations such as Boquete, Bocas Del Toro, Isla Contadora, Pedasi and Isla Grande, among others. This specialized list includes some of the best boutique hotels, resort getaways, eco-lodges, and B & Bs not so easily found on the Internet.

Hotels are not your only option, condo rentals are also in vogue. Instead of a hotel, travelers today prefer the authentic experience of staying in a furnished condo. The benefits include having a fully functional kitchen, more space to spread out, more privacy, and a more culturally rewarding “life-like” experience. Most units are decked out with high-speed Internet, satellite TV, and cell phones for visitor use.

Above: Having your own kitchen is convenient, especially for longer stays.

For weekly stays or longer, we would highly recommend a condo rental as long as you go with the right property management company. If you don’t, you could be snuggling up with a Panamanian cockroach at night, or be robbed blind by the friendly maid with five passports (each of a different nationality).

There is a big difference between furnished, and elegantly furnished. We’ve heard horror stories about smelly furniture and sagging mattresses. One guest we heard about arrived to a sink full of dirty dishes.

To help with your selection, in the full version of the Panama 101 E-Book we have identified two professional property management companies with good reputations; places we would recommend to our mother-in-law-to-be. The best property management companies have strict standards for quality of furnishings, cleanliness, and have a lower staff turnover that offers better service and security.

The longer your stay, the more appealing a condo rental will be. The companies we recommend offer discounts for longer-term stays.