The Castaway Paradise Island in Panama You Need To Know About [Isla Palenque Review]

The author stayed as an invited guest of Isla Palenque. All opinions are the author’s own, and neither Isla Palenque nor its parent company had input in any part of this article.

“Getting away from it all” is a term often used to describe going on vacation.

For me, a huge beachside resort with crowded pools and expensive food and drinks doesn’t feel like much of an escape. Isla Palenque is a refreshing alternative: surrounded by nature, with walks along deserted beaches and dining on local dishes I’d never heard of before.

This 400-acre tropical haven is so special that I considered gatekeeping it and sharing it only with my nearest and dearest. Alas, Isla Palenque deserves to be put on a pedestal, and I’m honored to be able to do so.

I spent 2 nights in May 2026 at this Cayuga Collection hotel with my friend Ollie. Here’s what stood out during our unforgettable stay.

How To Book a Stay at Isla Palenque

If you’re a World of Hyatt member with a ton of points (or a Chase credit card holder with a stash of Ultimate Rewards points), then you can book a stay at Isla Palenque using points. This became possible after Hyatt acquired Mr & Mrs Smith a few years ago, as Isla Palenque is part of the Mr & Mrs Smith portfolio.

Nightly points rates for a stay in one of the 8 beachfront casitas range from 88,250 in June 2026 to 117,000 in March 2027. Cash rates are also cheaper in June at $866, with the highest I found also in March 2027 at $1,364.

Hot Tip:

World of Hyatt elite status benefits aren’t recognized at Mr & Mrs Smith properties. But meals, soft drinks, boat transfers, and many activities are included at this property, so elite benefits may matter less here than at many traditional resorts.

It Felt Like a Castaway Escape

I might have been Robinson Crusoe in another life, as I love nothing more than seeking out the most secluded parts of the planet. The remoteness of Isla Palenque reminded me of the feeling I had in the Maldives. Though even there, in the middle of the Indian Ocean, I was surrounded by resorts (though I couldn’t necessarily see them) and probably a lot of other guests.

Isla Palenque felt different. After landing in David (DAV), around a 40-minute flight from Panama City (PTY), we drove 90 minutes to a tiny marina at Boca Chica on the coast of Chiriquí province. A member of the hotel’s team was waiting for us at the marina before whisking us off on a 20-minute boat ride to the island. Now that’s remote.

Once we arrived on the island after our complimentary transfer from the marina at Boca Chica, we were picked up in a 4×4 and driven along a dirt track to what felt like the middle of nowhere, but was actually the resort.

There wasn’t a beach club or $200 minimum-spend cabana in sight.

Rather, the only competition for space on the beach was with the crabs.

The pool was decidedly uncrowded, with plenty of loungers and cabanas available.

There Are Only 8 Beachfront Casitas

Each of the 8 casitas is named after a notable figure. Ours was named for the English writer and philosopher Aldous Huxley.

The simple boho beach design fit well within the casita’s natural surroundings. The room had double wardrobes, a large comfortable bed, and a sofa. A desk housed a minifridge stocked with complimentary soft drinks.

The bathroom facilities, which were entirely open-air, added to the castaway-island feel. There were 2 showers, a double vanity, and even a bathtub.

Out front was a wooden deck with a porch swing, a table and chairs, and a foot bath for rinsing off sand.

We didn’t use the sun loungers here, but we might have if there had been a pool to sit by. Adding even a small private pool outside of the casitas would make the experience feel more luxurious.

We had direct access to the beach through a narrow clearing in the jungle.

Walking barefoot along the beach to the restaurant at mealtimes was a simple highlight of my day.

Meals Are Included and Highlight Local Ingredients

Isla Palenque could use its remote location, far from any other restaurants or supermarkets, to charge exorbitant prices for meals at the resort. Instead, the room rate includes all meals, which are served on the beach.

With each meal, we were already looking forward to our next one before we’d finished eating. The à la carte breakfast menu was a great way to start the day.

A selection of lunch and dinner menus rotated, so the daily options were different. Even though some items, like the ceviche, were featured on each one, it never felt repetitive.

Dinner was an equally delicious time of day. The first night, we enjoyed a 3-course feast on the beach. It was worth eating dinner a little early, around 6 p.m., to catch a spectacular sunset.

It rained a little bit each of the 3 days we were there. It was only our final evening when a deluge forced us to eat in the covered yet still open-air part of the restaurant.

The menu on the last evening sounded so good that we ordered 3 of the 4 starters. We were both tempted by the catch of the day for the main course.

The Beaches and Jungle Are the Main Attraction

I’ll never forget stepping out from the casita onto the beach to be met with the fiery glow of a deep orange sunset.

The wilderness of Isla Palenque’s untouched beaches was a majestic place to run.

Somehow, the coming and going of the tide left dark and light stripes along the beach, which I nicknamed “zebra sand.”

Even though the sun rose on the complete opposite side of the peninsula, we still enjoyed a beautiful sky on our last morning.

Despite being in the middle of the jungle, I didn’t get a single mosquito bite.

Daily Activities Kept Us Occupied

To mix it up from lazing on one of the resort’s 7 beaches or by the pool, Isla Palenque offers a selection of daily complimentary or donation-based activities. From kayak fishing and cocktail classes to night walks and yoga, there’s something for everyone.

On our first morning, we took a class with resident yogi Brandon. Morning yoga and evening meditation are donation-based activities.

Following yoga, we went on a guided walk with Patricia, which began with a fascinating introduction to the island’s history.

We Experienced Panamanian Hospitality

In my experience, Latin America is home to the world’s warmest and most welcoming people. Isla Palenque was yet more proof of this. Ollie and I speak Spanish, and we loved chatting with the staff.

The star of the show was Yuli, with her beaming smile and infectious positivity. It was a pleasure to get to know her briefly during our short stay.

Having stayed at 3 Cayuga Collection properties — Kurà in Costa Rica, Jicaro in Nicaragua, and Isla Palenque in Panama — I can only commend Cayuga for picking the right people to join their hotel teams.

Final Thoughts

I know they’re completely different experiences, but there were elements of my time at Isla Palenque that evoked the same peace, tranquility, and gratitude I remember feeling in the Maldives.

In our fast-paced society, where being busy is a badge of honor, not everyone finds it easy to be present in the moment and do nothing. If you’re one of those people, I suggest you give Isla Palenque a try.

The level of service, the quality of the food, and the stunning natural surroundings make Isla Palenque fully deserving of its luxury positioning.

The resort isn’t far from Hotel Finca Lerida — a coffee farm in the mountains — which is in the process of joining Cayuga Collection. We stayed there for a couple of nights before Isla Palenque, and the combination of the 2 properties was a great way to experience off-the-beaten-track Panama.