In recent years, Boquete, Panama, has blossomed into a popular travel destination. It’s home to expansive coffee plantations, challenging hikes, and a growing population of American retirees.

I visited the town earlier this year, and when it came to finding a place to stay, a castle seemed like a remarkable choice.

Everyone I spoke to during my two days in Boquete knew exactly where I was staying when I mentioned a castle. In a town filled with one-story bungalows, a castle stands out. The locals told me that while it was once a private residence, it was sold and transformed into a budget hotel in the last decade.

Two Canadians, Tom Oman and Dan Adelman, started the hotel and hostel brand Bambuda in 2014 when they opened their first property in Panama’s Bocas Del Toro. A few years later, they purchased the castle in Boquete.

As they expanded across Panama, the pair targeted budget travelers. For example, Bambuda Castle offers a range of accommodations. Shared rooms cost $20 a night for a bed, and on the more expensive end, visitors can rent an entire cabin for $120 a night.

It’s not just a castle that Bambuda is known for. Four tiny homes on its property feel straight from a “Lord of the Rings” novel.

Each tiny home can accommodate two guests. A few weeks before arriving in Boquete, I reserved a “Hobbit house” for two nights. After taxes and fees, the tiny house cost me $155 a night.

The staff excitedly welcomed me to both Bambuda and Boquete.

Beyond accommodations, the property works with tour operators to help coordinate activities for guests. I didn’t have enough time to join a tour, but I eyed a booklet highlighting various activities, from coffee tasting to whitewater rafting.

Once check-in was completed, the receptionist pointed out a short trail to my tiny home for the next two nights.

As I dragged my suitcase along the paved path, I admired the lush green grass, blossoming flowers, and towering palm trees.

The tiny homes themselves were impressive from the exterior. The entire structure was coated in thick, soft grass. I figured the room’s bed would be comfortable, but the grass looked equally enticing for a nap.

It was like I had been transported to Hobbiton, the fictional place in J.R.R. Tolkien’s “The Lord of the Rings” and “The Hobbit” books.

Perhaps even more impressive than the grass structures was the view. My tiny home’s small patio had space for two chairs and a table.

From the patio, I saw nothing but green. Lush mountains reached to sky, and fields of coffee plants could be spotted in nearly every direction.

After taking in the view, I pulled open a sliding door and stepped inside the tiny house.

The interior was clean and simple. The majority of the room was filled with a queen-sized bed.

Two wooden nightstands hugged the sides of the bed. Near the entrance was a shelving unit for storage and belongings, and near another curved wall was a small high-top table.

The room’s wooden accents, stone walls, and metal details felt rustic and reminiscent of Hobbiton.

Along the back wall, a large wooden door led to the bathroom.

The rustic and wooden themes continued into the bathroom, where I discovered a stone-walled shower and a large wooden vanity.

With fresh towels, clean sheets, and a stunning view, I was all set for my short stay in Boquete.

After settling in, I adventured out of my tiny home to explore the rest of the property.

These cabins seemed more spacious than the Hobbit homes, and each cabin had a larger, shaded terrace.

According to Bambuda Castle’s website, they’re a bit more affordable at $90 a night.

Koi fish and lily pads filled a shallow moat surrounding the Bambuda Castle.

Bambuda Castle had two large shared rooms. The first was home to the property’s restaurant and bar, which served various foods, from burgers to sandwiches.

Whether you were purchasing food or not, guests were welcome to use the area’s seating, pick out a board game to play, or head upstairs to a TV room.

The second communal area was downstairs. It included a large pool, a small jacuzzi, and a communal kitchen for guests who would rather cook than eat out.

While the castle and cabins were stunning, the views from my Hobbit houses were the highlight of my two-night stay.