While Costa Rica, with its pristine rainforest and beaches, takes center stage as a coveted Central America vacation destination, its underappreciated, uncrowded neighbor to the south, Panama, is positioned to steal the spotlight — and with good reason. The beautiful country on the isthmus linking North and South America enjoys a prime location between the Pacific Ocean and Caribbean Sea, just a short plane ride away from the United States (Copa Airlines offers direct flights from several cities).

On a recent afternoon, I took a 50-minute flight from Panama City to Bocas del Toro Town on the southern tip of Isla Colón. Locals and visitors were already dining at candy-colored restaurants and whooping it up in waterside bars to celebrate what’s locally known as “filthy Friday.” The vibe was relaxed yet lively — but I was looking to disconnect completely and discover bliss of a purer nature. I was greeted with a glass of bubbly at my water taxi and climbed in for the short 20-minute ride to a destination that felt a world away: Nayara Bocas del Toro. The private nine-acre island paradise is dotted with several elaborate towering treehouse accommodations. My home, however, was one of 18 overwater villas flanked by native mangroves arching their roots into the tepid Caribbean Sea. I couldn’t wait to join them.

Life here, naturally, revolves around the water. A day is well spent exploring the island setting aboard a kayak while frigatebirds circle and play in the thermal updrafts overhead. My snorkeling adventure off nearby Bastimentos Island included a pit stop in the shallows of a small mangrove island in an area that my guide referred to as Hollywood. The reason? Rather than celebrities, orange starfish lounge beneath the sparkling surf, an underwater Walk of Fame lining the sandy seafloor. In such a relaxed aquatic environment, it didn’t come as a surprise when one barefooted guest showed up to dinner that night in a wet bathing suit. “You’re not going to get judged here,” Nayara Bocas del Toro Founder Dan Behm reassures me. “We strive for casual elegance.”

This part of Panama still has the feel of a new frontier, and Behm is working hard to make sure it stays that way. While guests’ comfort is key, the two-year-old property is equally focused on preserving what makes this area so special. Behm understands both the urgency of sustainability and the economic importance of ensuring others like me that they can continue to experience the area as it should be—unspoiled. That’s why Nayara Bocas del Toro is working with Caribbean Coral Restoration to regrow critically endangered coral around the island, including on artificial reefs that can be viewed through windows set into villa floors. “We built on this island because of the crystal-clear water and the coral reefs,” Behm says. “If we lose that, we’ve lost.”

On my final night, I enjoyed a sunset cruise through Dolphin Bay with my fellow intrepid explorers: pods of dolphins returning from a day spent in the surrounding sea. As my boat glided past a pair of the playful mammals slicing through the water, I took in the distant hazy purple rainforest beneath a sherbet-orange sky aglow from the setting sun. I had mere hours left to enjoy these dreamy surroundings that felt a world away from reality. “Our goal is to have this be the best experience of our guests’ lifetimes and something they’ll always cherish,” Behm says of Nayara Bocas del Toro. He adds that a success for him is when those who visit here cry when they have to go, as they often do.

There were no tears in my eyes when I hopped aboard the boat to head back home, but I felt better off — for there was a big smile on my face.

Night at the Museum

Panama City is a must-see destination when traveling to or from Nayara Bocas del Toro, and walking through the doors of Hotel La Compañía in the colorful Casco Antiguo neighborhood is like stepping into a history book. “The Hotel La Compañía is more a destination than a hotel,” General Manager Fidel Reyes explains of the sprawling property that took nine years to complete and just opened last year.

Known as the “Living Museum,” the hotel takes up a full city block and is divided into three sections that reflect the area’s multicultural roots: the American wing played host to the American Bazaar clothing store in the early 20th century, the French wing housed Central America’s first university in the mid-1700s, while the Spanish wing was a convent in the 1600s. Even the gnarled avocado tree in the hotel’s expansive central courtyard dates back 150 years. A tour of the hotel’s gorgeous inner spaces reveals even more thoughtful historical touches, including framed Panama Canal documents, a vintage photo exhibition and massive marble reliefs showcasing buccaneer Sir Henry Morgan and explorer Vasco Nuñez de Balboa.