I stayed at Hostel Aleman. It's about 20 minutes to downtown Panama. Room is nice and clean. However, the rooms in front can be a bit warm at night. Rate for single is US$20.
Carola runs the hostel with her son, Patrick. She prepares morning breakfast, and lays them nicely on the table for the guests.
The reception at Hotel Bali Panama (Chitré). Room rate is US$30 for a double bed. Pretty decent hotel.
