Looking a bit worn around the edges but still voted tops in Panama, this central hostel counts six private rooms with shared showers, and a massive, bright and airy dorm with 27 beds in triple-deck bunks. Dorms are curtained and have lockers; the artwork is by volunteers. The Buddha theme, bafflingly prevalent in Panama, is present here.
The Shisha loft lounge above the lobby is full of books and is very cool, as is the 'tree' of Polaroids, which features everyone who's ever stayed at the hostel. Bicycle rentals are available for US$2/8/12 per hour/half day/full day.