We stayed at the Central Hotel for 3 nights recently while in Panama City. It is well located in Casco Viejo, on the square across from the Cathedral and next to the Panama Canal Museum.
Service at check-in was average, though the bellman was very friendly and helpful. As we settled in our room after a long day of travel, we discovered that the tv didn't work and there was no hot water. We called the desk for help. Although they ultimately fixed the problems, they seemed largely disinterested. I asked for a different room, they refused. It was clear the hotel was not full, and a better run property would have moved us immediately.
The room was very clean and fairly spacious with two double beds and a seating area and a desk. The bathroom was quite nice with double sinks and nice finishes. We heard a lot through the walls--a guest next door had a long phone call very early in the morning and we could hear every word. Windows in the room were strange--too high to look out, though they provided adequate light. I think we were in a newer part of the hotel--if I returned I would ask for a room in the older part.
There is a small but nice pool on the roof of the hotel and this is the highlight of the property. I went up there in the late afternoon one day and it was breezy and beautiful, with nice views over the rooftops of the town.
Breakfast was average--fruit, cereal, bread, and eggs cooked to order. The juices were so watered down it was hard to tell what fruits were in them. The hotel restaurant was under construction while we were there so we did not have the opportunity to try it for dinner.
Our best meal of the trip was at Ochoymedio--just a couple of blocks away from the Central Hotel and DELICIOUS. A great setting, too.
Checkout was strange--the hotel apparently uses express checkout (a bill was left under our door the morning we left), but then we had to go through the entire checkout process anyway at the desk. It was taking forever (something seemed to be wrong with the credit card machine) and we finally just left and figured they would sort it out later (they did).
If you are willing to pay more, stay at the nearby American Trade Hotel. I have heard excellent reviews from many friends who have stayed there, and my impression is that the level of service there is far higher. We considered it, but the rate at American Trade during the time we were there was almost double the rate of the Central. Perhaps you get what you pay for.