Luna's Castle

Luna's Castle wasted no time making a name for itself after opening in 2008—the hugely popular hostel offers a great set of amenities for the party-loving backpacker crowd and quickly grew to hold almost 100 beds that tend to stay full. Guests have free range of the lounges with their couches, hammocks, and computers with internet access, the kitchen with an enormous stovetop that hosts make-your-own-free-pancakes breakfast every morning, the balconies with views over the Bay of Panama, the shelves of shared guidebooks, and the wireless internet everywhere. English-speaking staff are friendly and happy to give advice for whatever adventure comes next. The place has made atmosphere a priority, sometimes offering lodging in exchange for artwork; expect to see walls covered in paintings, impressively large maps, and even a plus-sized dreamcatcher waving in the breeze.