How to Choose a Commercial Property for Hospitality Businesses in Casco Viejo
Opening a hospitality business in Panama’s historic district can be a game-changing move — but choosing the right commercial property in Casco Viejo (San Felipe) takes local insight, strategic planning, and attention to detail.
Whether you're planning to open a boutique hotel, restaurant, rooftop bar, or cultural venue, Casco Viejo offers unmatched charm, foot traffic, and cachet — but also comes with architectural limitations, preservation laws, and operational challenges you’ll want to navigate wisely.
This guide walks you through everything you need to know before securing a commercial space for your hospitality project in Casco Viejo.
Why Casco Viejo Is Ideal for Hospitality Businesses
Casco Viejo, also known as San Felipe, is the historic and cultural heart of Panama City. A UNESCO World Heritage Site, it draws both tourists and locals thanks to its colonial architecture, art galleries, nightlife, and vibrant street life.
Key Advantages for Hospitality:
- High foot traffic from tourists, expats, and locals
- Home to top-rated hotels, bars, and restaurants
- Strong appeal for high-end and boutique concepts
- Tax incentives available in select areas (e.g., Santa Ana)
- Iconic rooftops, courtyards, and balconies perfect for unique experiences
1. Define Your Business Concept First
Before choosing a property, get crystal clear on your hospitality concept. Are you launching:
- A rooftop cocktail bar?
- A 4–10 room boutique hotel?
- A fine dining restaurant?
- A hybrid cultural space with live music?
Each concept has specific space, layout, and permitting needs — so define your vision before starting the search.
2. Choose the Right Building Type
In Casco Viejo, most commercial properties fall into one of three categories:
- Restored colonial buildings: Move-in ready but often carry a premium
- Shell-condition properties: More affordable but require full renovation
- Mixed-use buildings: Combine residential and commercial (great for guesthouses or Airbnb hybrids)
Your budget, timeline, and design flexibility will influence which type works best.
3. Consider Foot Traffic and Visibility
Not all streets in Casco Viejo are equal. For hospitality, you’ll want to be on or near:
- Avenida Central
- Calle 3a, Calle 9a, or Calle San Felipe
- Popular corners with restaurants, nightlife, or hotels
Visibility is key — but remember: some of the most successful venues in Casco are tucked away in alleys or courtyards with good signage and reputation.
4. Understand Restoration Regulations and Permits
Because Casco Viejo is a protected historic zone, any changes to the structure — including signage, paint, or internal renovations — must follow strict guidelines.
What to expect:
- Approval from Dirección de Patrimonio Histórico
- Longer permitting timelines than in other neighborhoods
- Limits on structural modifications, roofing, and materials
Working with experienced architects and legal consultants is a must to avoid project delays or fines.
5. Infrastructure and Utilities Matter
Hospitality operations require specific infrastructure, such as:
- Commercial-grade kitchen ventilation and grease traps
- Reliable water pressure and plumbing
- Soundproofing for music or entertainment venues
- Split utilities for mixed-use or tenant properties
Make sure the property you choose either has these or can be modified to accommodate them — with permission.
6. Think About the Guest or Customer Experience
Your space should align with your brand identity and guest expectations:
- Boutique hotel? Look for balconies, natural light, and architectural details
- Cocktail bar? Seek out rooftops, terraces, or indoor-outdoor flow
- Restaurant? Prioritize ventilation, flow between kitchen and dining area, and street access
- Event space? Confirm acoustic capability and load-in/out access
7. Work with a Local Real Estate Partner
Navigating Casco’s commercial landscape is much easier with a trusted advisor. A local real estate team can help you:
- Identify properties that match your vision
- Understand regulations and required permits
- Connect with architects, lawyers, and engineers
- Negotiate fair pricing based on market comps and restoration needs
Ready to Build Your Hospitality Brand in Casco Viejo?
Launching a hospitality business in Casco Viejo is more than a real estate decision — it’s a legacy move. But choosing the right property can make or break your concept.
FCA Group helps investors, restaurateurs, and hoteliers find and secure the perfect spaces in Panama’s most iconic district. Browse commercial hospitality listings in Casco Viejo or Get in touch for personalized assistance with your business plan.
