I recently stayed at the Via Espana in Panama City and was pleasantly surprised. I actually stayed in two different rooms, one for three nights and one for one night on my last night of the trip. The rooms were both equipped with airconditioning that worked and two beds. The first room was quite noisy due to the street traffic, but I living in a big city, so I am used to that. The second room was very quiet. It was not directly over the street. Both rooms had clean, comfortable beds. The hotel is in a convenient location and offers a great breakfast. It has free transportation to the International Airport, but only at certain times. We took a cab, since the times weren't convenient for our flight. It is located only about 15 minutes cab ride from the Albrook Domestic Airport and bus station, which was also convenient. If you are looking for an inexpensive hotel that is comfortable and in a decent location, this is the place to stay!

We had made reservations for 1 room for 4 people. When we showed up they had us booked into a room with one dbl bed and one single bed. We were told us there were no other rooms. We asked if they could at least provide some extra blankets for my 15 year old son to sleep on the floor, but they said the laundry was closed and they couldn't get any (it was 8pm). In the end they were able to find an open room with two dbl beds. Half of the lights in the room were not working, it was on a busy street with lots of truck noise, but there was hot water, and the a/c worked well enough and for $88/night (breakfast included) it met our requirements.
Check out time was 1pm, we asked for a late check out for 2pm because my son was not feeling well. The receptionist said they would charge us $44 for the extra hour. The manager overheard the request and let us stay the addtional hour for no charge. That was very much appreciated.
This is a no frills hotel. Do not expect any extra amenities/luxuries. There were sheets, bedspreads, pillows, soap and towels. The receptionists were nice, but not too helpful. The breakfast buffet was adequate, eggs, maize tortillas, toast, fruit, juice, coffee. Internet access in the lobby for $1/hr. ATM at a gas station across the street. Bus stop close by.

I didn't know how to choose a hotel in another country, but through TripAdvisor I found prices and location of different hotels as well as the reviews. Personally, I'm very happy after choosing Hotel Via Espana. It's close to everything, all the main bus routes go nearby, the hotel is clean, the food at the restaurant is excellent, breakfast is enough.
The only thing I didn't like was the street noise since the windows didn't seem to be thick. But I was awake very early and that wasn't a big deal for me.
I saw a lot of people checking in everyday, as well as families with kids. I think that says a lot of a hotel.
Also, they pick you and take yo to the aeroport.
I would go back to that hotel if I ever went to Panama again.
Thanks.

Front desk staff was surly, like I was interrupting their quiet time at 8 in the evening. Refused to honor the pensionado discount (retirees in Panama).
Room was bare-bones, towels but no soap. AC worked okay but blew the curtains away from the window so there was a constant light show all night long. Sheets were thin and well used. Room looked to be 50 years old, with moldy spots on the floor from water habitually leaking from the room above.
There was a lot of street noise, even with the AC on, making it hard to sleep. There was a small TV and the remote worked, so there's one thing.
For $50 a night, there have to be some better choices in Panama City.