Trump's security guards also left the property.
The dramatic development in a 12-day dispute over control of the property came early yesterday when a Panamanian judicial official and police officers backed the hotel's majority owner, Orestes Fintiklis, as he took possession of the 70-floor, waterfront high-rise.
The most recent feuding between the two parties began on February 22 when Fintiklis came to the hotel to serve termination notices for Trump's management team, but Trump hotel officials turned the businessman away.
The Trump Organization refused to leave the property, saying Fintiklis had no legal grounds to break its contract.
The Trump Organization, however, insisted the decision was temporary, pending final resolution of the dispute.
However, the building's future remained uncertain as the Trump Organization said it could still retake control of the hotel.
As the New York Times reported, "An arm of a foreign government finds itself in the extraordinary position of investigating a business owned by the American president". "And today this dispute has been settled by the authorities and the judges of this country".
EFF: 'It is not revenge we seek but our land'
He also said that a more appropriate mechanism was a constitutional review, rather than an ad hoc committee. It was passed by an overwhelming majority of 241 votes in favour versus 83 votes against the proposal.
And as the final humiliation, Fintiklis ordered Trump's name to be ripped off from the outside of the hotel - check out ABC News' video footage of Trump's name being torn down below.
The hotel and the majority of the apartments were sold a year ago to Mr Fintiklis' Ithaca Capital Partners, which is based in Miami.
"Today Panama has made us proud", Fintiklis said, adding that he meant to apply for Panamanian citizenship.
The owners of the hotel property had paid at least $32 million to use the Trump brand, according to the AP.
The property President Donald Trump once referred to as his daughter Ivanka Trump's "baby" appears to no longer be part of the family. Or as a spokesperson for Citizens for Responsibility and Ethics in Washington (CREW) told Business Insider, "When the president refused to divest from his businesses, there was always the fear that there would be some sort of incident at one of his overseas entities, and his judgment and loyalty could be tested. That's a question we shouldn't have to ask, but one everyone needs to be asking".
Within hours of the verdict from a Panamanian court, hotel staff removed the Trump name from it main entrance.
The dispute had spilled out into the open last week with Fintiklis, the majority owner of the hotel, arriving at the lobby of the building with associates.