If you are seeking a beautiful hostel in a safe, well-to-do part of Panamá City — and you are OK with staying in a 6-8 bed dorm — I highly recommend Los Mostros hostel.
It was built by an Architect. It had a pool in back, a billiard/pool table and ping pong tables out front. The kitchen is spacious and has real cooking items and plates, not broken odds and ends. There is a refrigerator for your food — and it actually works.
There are just a couple of downsides:
- Smoking is limited to outside but you breath that smoke in the inside recreation rooms too.
- There are no private rooms.
Here is a photo taken from the lobby area looking into the main recreation areas. Those two bean bag chairs are upstairs across from the reception desk.
I will add more photos and info, time and photos permitting.