Last updated on March 20th, 2026 at 07:32 pm

Budget Hotels I Like in Malacca, Malaysia
I’ve visited Malaysia a little over a dozen times. But I’ve only been to the tiny yet once vital port town of Malacca, or Melaka in Malay, three times. Most recently, this early March 2026, for three nights.
In my opinion, only three days is more than enough to explore the city. There’s not much to do there. Except eat some delicious food! But that’s a subject for another post in the works.
To make the most of this trip, I stayed in three different hotels to write this review. All are budget Malacca 2 star hotels I can confidently recommend!
But we’ll start with my current favorite budget hotel during my recent visit!
SGI Vacation Club ⭐️⭐️

I stayed at SGI Vacation Club for my first night in Malacca. I paid around $29 USD, including taxes. It was for a superior queen room with a smart television. The room size was around 11 square meters. But honestly, it felt a little larger.
There’s a small work desk, and space to put away luggage and even hang clothes. The mini fridge was a nice surprise, too. Also, the room security box is big enough to store a 13″ laptop.

The room’s queen size bed was really comfortable. I slept well at night. It helped SGI Vacation is in a quiet neighborhood.
The bathroom was clean with a nice walk in shower. As a matter of fact, the entire room was really clean and smelled nice. I really like the towels. It was soft, fluffy, and clean.
There’s a nice big sink and a hair dryer attached to the wall. Which would’ve been nice to use if I had hair.

Oddly enough, the air con is always on. You can adjust the temp, though. But I always prefer a nice, chilly room.
Finally, this hotel is about a ten minute walk to Jonker Street (a famous area in Malacca). It may look quiet at first with absolutely nothing around. But if you walk 5 minutes south, there’s an area filled with a lot of restaurants, from Chinese Malay to Indian Muslim.
Plus a few shopping malls nearby as well.
Do note that upon check in, guests are required to leave RM100 as a security deposit. Kinda high in my opinion, but it is what it is. You get it back when you check out. Assuming the room is in the same condition as you left it.
And there’s a Malacca Heritage tax, which is RM2 per night, paid upon check in.
Read reviews and find a hotel discount for the SGI Vacation Club on Agoda.com

You can consider Dutch Square as the town center in terms of Malacca tourism.
FENIX INN MALACCA ⭐️⭐️

The Fenix Inn Hotel is not far from the SGI Vacation Club. The reason this hotel is my second favorite is that, even though it’s about the same price, Fenix Inn charges a few dollars more for rooms with windows.
But the windows aren’t soundproof. I got a room facing the main roadway. So as you can imagine, there was quite a lot of traffic noise. Through the night, it’s not bad. Early in the morning, and especially on weekends, noise can be bad.
I paid $32 USD per night after taxes. However, the room is 17 square meters, the superior queen room with a window. That’s quite spacious for a solo traveler like me. So this price is absolutely worth it.

The mattress is a bit firm for my taste. But most importantly, it’s a clean room. The bathroom is just fine with nice hot water for showers.
Fenix Inn Hotel is a good choice. The location is close to many restaurants, and a stone’s throw away from two shopping centers.
Only ten minute walk to Jonker Street. I highly recommend!
Read reviews and find discounts for Fenix Inn on Agoda.com

Dutch Square is a strategic and convenient point for exploring Malacca. Melaka River is directly opposite, so you can hop on tour boats for a river cruise.
It’s close to the city’s Chinatown and also Little India. Plenty of great food options in the area. Very affordable too.
JonkerRED Heritage Hotel ⭐️⭐️

Doesn’t look like much from the outside. But out of the three Malacca hotels reviewed here, JonkeRED Heritage Hotel is the best one in terms of quality, ambiance, and location. Reminds me a lot of Penang’s Rare Heritage House, which I reviewed last year.
It costs more than the SGI Vacation Club and the Fenix Inn. I had an extra $20 USD burning a hole in my pocket. So I could afford the $50 USD for a one night stay. It’s a big room, 19 square meters, with a street view. No noise as traffic is closed off.
It’s a really clean hotel too, with friendly staff. One of the best beds I’ve slept in Malaysia, honestly. I didn’t want to get up. But it was my last day in Malacca.
Location is tops. Right next to Dutch Square, so it’s a short walking distance to Jonker Street. As well as the historical and cultural sights, Malacca is famous for.

Read reviews and find discounts for JonkeRED Heritage Hotel on Agoda.com
How I Traveled to Malacca
From Kuala Lumpur, I took a bus from Terminal Bersepadu Selatan. Bus tickets are inexpensive, and travel time is around 2 hours.
The bus arrives at Melaka Sentral. From there, it’s best to use Grab Taxi. At that time, it cost me around $2.50 USD for 15 minute drive to the first hotel I stayed in Malacca, which was SGI Vacation Club.
