I've only stayed in one bed and breakfast in Panamá City: La Estancia. After six nights, there's really no reason to stay anywhere else.

La Estancia is located in Cerro Ancón (or Ancón Hill), a nicely forested spot in the formerly U.S.-occupied Canal Zone that is now populated by many ex-pat retirees and the current President of Panamá (Torrijo). Owned by a welcoming and accommodating couple, La Estancia provides ten affordable rooms (we paid $59/night) and two spacious suites. Our room was a bit smaller than expected--but we were there to see Panamá, not the room, and it was perfect for us. Wealso noticed that one screen did not seem to adhere to the wall completely, which may have permitted a few mosquitos to sneak in. In any case, remember your bugspray. Otherwise, the a/c was very effective, the room was clean, the furniture comfortable, the bath fixtures functional, and housekeeping was excellent at making up our room daily and keeping the bathroom stocked.

La Estancia provided a wonderful breakfast every morning, starting at 7 or a little earlier: a strong but very good local brand of coffee (Durán); a mixture of fresh watermelon, mango, papaya, pineapple, and bananas; a variety of yogurt; cinnamon-tinged bread; cereal; and eggs, omelettes, or pancakes from the kitchen prepared by friendly staff. You can eat breakfast inside or on the two balconies that face the trees and provide a view of the Bridge of the Americas in addition to the various birds and occasional monkeys, sloths, or other animals that stop by to feast on the seeds and bananas that the staff set out every morning.

Due to the location and the forests of Áncon Hill, one of the best features of La Estancia is the nearby wildlife. We were within twenty to thirty feet of toucans, monkeys, agoutis, other colorful birds, and even a possum during breakfast or chatting with other visitors we met from the U.S. and Canada. We also took a hike (about one mile each way) to the top of the hill, which provides a beautiful view of the city, the canal, the surrounding areas, and the largest Panamanian flag in the city. The top is a symbol of Panamanian patriotism and is well-worth a visit. There's currently a movement to privatize the area and make way for a passenger tram, so although this is met with much resistance from locals, it's best to go while you still have the chance!

Additional amenities include free internet access (one terminal is available), snacks, drinking water and beverages, and several tours of Panamá City and outlying areas through a separate tourist business called "Panoramic Panama," which is worth considering. We went on two of their nature tours and their guide for the Pipeline Road birding trip (Mario Bernal) was top-notch!

It's worth noting that although it's a beautiful location, it's also rather secluded from restaurants or nightlife. There is a nearby shopping area called Mi Pueblito, which is more like a pretty ghost town that provides some nice handmade crafts for purchase. You can also walk about 15 minutes to see the murals in the Canal Administration building. Other than that, it's probably best to take a taxi (fares are very reasonable).

The atmosphere in La Estancia is warm, bright, and friendly. The staff were always ready to answer our questions, call a taxi, or even order food for us when we weren't confident with our Spanish. Their driver also picked us up from the airport at 10pm with a fair amount of cheer (transfers were $35 each way). We didn't see any children, but there are plenty of animals around to keep even us adults entertained. Just remember that the animals are more active in the morning and don't complain when the birds begin making racket an hour before sunrise!

Advertised as "Rooms and apartment suites for Nature Lovers," La Estancia is a quiet respite for those who prefer a local guesthouse on a wooded hill to busy hotels in congested business districts.

Location, location, location Situated near the top of Cerro Ancon, La Estancia is close ($2 taxi ride) to both the quaint brick-lined neighborhood of Casco Viejo and the touristy Canal Zone in Amador Causeway. At the base of Ancon hill is Mi Pueblito, a reconstructed Spanish Colonial village where a pollera museum, folk dancing and souvenirs are a 10-minute walk away. At the top of the hill, towering mangroves hide colorful birds, reptiles, and sloths.

An added bonus is that La Estancia is run by a friendly, helpful couple in the tourism industry, Tammy Liu and her husband, Gustavo Chan. They will book your stay at upscale city hotels or their own place, which is new, a testament to which were the curtains that arrived the same day we did. They also offer transport services, city/canal tours, sailing or sunset cruises, and day trips to El Valle, Embera Indian Village, Gamboa Birding, Fort San Lorenzo, Barro Colorado or Taboga Island. Check out Panoramic Panama.

I was impressed with Tammy's prompt email replies, additional information and offer to make dinner reservations for our arrival night. She booked accommodation for us at both her guesthouse and the Country Inn--saving us money and getting us a balcony room for the same cost as a standard room. And accepted checks!

We booked her transportation services, which matched the best rates in town. Tammy and Gustavo greeted us at the airport, dropped our luggage at their inn, then delivered us at Las Bovedas on their way to meet friends at another restaurant in Casco Viejo.

Not a native Spanish-speaking person herself, Tammy was mindful to give us a business card, the address for our taxi driver and told us not to pay more than $2. When we returned after a wonderful evening and a hassle-free taxi ride, we found that our room was actually an apartment.

We'd booked a standard room for $45 but were upgraded unknowingly to the $75 apartment without charge. Tammy had apologized for changing our request, stating that two couples booked the standard rooms for three days.

Inside the burnt orange two-story building was a comfortable living room with large picture windows overlooking trees, a full kitchen with steel stools at a breakfast bar, an oversized bedroom with two beds and door leading to a deck, storage room/walk-in closet, laundry room with ironing board and iron, and a good-sized bathroom. What a bargain!

And breakfast was included. Around 7am, Tammy brought cereals, yogurt, bananas, warm croissants, juice and coffee to our room, informing us that she was ready whenever we were. Ah, yes. We wanted to squeeze in a city tour (8am-noon) before Tammy drove us 40 minutes to Canopy Tower in time for lunch.