Last updated on January 30th, 2026 at 08:01 pm
Suppose you’ve checked out my excellent blog post on where to stay in Kuala Lumpur for your first epic visit to Malaysia. In that case, you might also consider visiting the beautiful island of Penang! Which I highly recommend!
Over the years, I’ve stayed in numerous hotels in Penang, ranging from budget accommodations to slightly upscale ones. And I can say one thing for sure: Penang hotels are incredibly affordable, with top-notch quality and service.
It’s an absolute no-brainer that the port city of Georgetown, situated on the northeastern section of the island, is the best area to stay in Penang. Georgetown is listed as a UNESCO World Heritage Site.
As you step onto the streets and alleyways, you can feel the incredible history and culture. And you’ll most certainly smell the excellent food.
Why Georgetown in Penang:
- Proximity to Georgetown Ferry Terminal, Pangkalan Raja Tun Uda (PRTU) / Butterworth Ferry Terminal, Pangkalan Sultan Abdul Halim (PSAH). Ferry fare is 2 RM for adults, and 1 RM for kids 5-12.
- Georgetown is the center of activity in Penang. You can travel by public bus, but remember it’s cash only (as of writing) for foreign visitors, so be sure to have the exact change. Grab Taxi service is available.
- Food, food, glorious food. You’ve got Chinese, Indian, and Malay. There are many international restaurants too, I saw Mexican, Thai, Italian, Japanese, you name it.
- You can walk to most of the attractions within the city of Georgetown. I’m talking about the famous Armenian Street. How about night markets with more food, like MacCallum Night Market and Kimberley Street Food Night Market? The streets are flat, though be careful of potholes. Certain roadways are congested with cars. Pedestrian sidewalks are often blocked with motorbikes. So, quite usually, you are forced to walk on the streets.
- The beautiful beaches of Batu Ferrenghi are 11km from central Georgetown. You can easily reach Batu Ferrenghi by taking the public bus #101.
Penang is not far from Kuala Lumpur, about 4 hours by bus and 3 hours by train. I’ve tried both modes of transport and will write a post on both experiences soon. If you’ve got the time during your first epic visit to Malaysia, there is no excuse NOT to visit Penang, especially if you love food. And oh boy, I tell you, Penang got the goods and receipts, their food is incredible!
You will love exploring Penang and the food you come across on your travels.
One thing I’ve learned about traveling around Penang through the years is that hotels in central Georgetown are a fantastic value. Don’t let the fact that most of these hotels have two stars put you off.
It’s only because many budget boutique Penang hotels don’t have swimming pools or gyms. After all, many are converted shophouses and small residential buildings.
So, there’s a lot of charm and a rustic atmosphere. But of course, fitted with modern comforts like air conditioning, updated electrical power ports so you won’t need power adapters, a room safe, and flat-screen televisions.
Bonus Georgetown, Penang Hotel Booking Tips:
- Check in is usually 3pm. Many hotels allow guests to check in a few hours earlier if a room is ready. Check out time 12pm.
- Certain hotels require a 50MYR security deposit upon check-in. Also, depending on where you book your hotel, you may need to pay Malaysian hotel tax. For example, when I stayed at Rare Heritage House, I booked on Agoda.com I was required to pay 2MYR per night hotel tax. But I did not have to leave a security deposit.
- You do not need to book a room with a breakfast buffet. Unless you only prefer Western food. Finding good food on the streets of Penang is easy and affordable. There’s a reason why Penang is named Malaysia’s food capital!
Recommended Hotels in Georgetown, Penang
The first hotel I recommend is called Rare Heritage Hotel. I stayed there during my most recent visit to Penang. I liked it so much that I couldn’t wait to write this post about the best budget hotels I stayed in Penang.
Rare Heritage Hotel ⭐️⭐️
Formerly the Reunion Hotel, but rebranded as Rare Heritage Hotel. The renovation was recently finished in 2023. So this unique boutique hotel is still shiny and spiffy.
First, let’s talk about location. It’s excellent!
Only a 1km or about 14 min walk from Georgetown Ferry Terminal to Rare Heritage Hotel on Victoria Street. Many popular restaurants and cafes surround you. Especially mom-and-pop hawker stands. Armenian Street, Kimberley Street Food Night Market is a 10-minute walk.
Ghost Museum, Upside Down Museum, Chinese temples, and a Mosque. Even the famous clan jetties are not far from a nice glimpse into the lives of locals.
I booked a deluxe king room with a courtyard view on Agoda.com for around $35 USD per night, including taxes, and I stayed 4 nights. I had to pay 2 RM per night for some hotel tax at the reception desk.
Then I was handed the key to room 116. The receptionist who checked me in walked me to the other end of the hotel entrance, on Beach Street.
I didn’t know what to expect, but I tell you. When I opened the doors to the room, I was pleasantly surprised. Room 116 is 18 square meters, but the room looked and felt a little bit bigger.
There’s a large king-sized bed. The big television that I never watched during my entire stay. A room safe that easily fits a 15″ notebook computer. Fast Wi-Fi internet connection. Mini-refrigerator to keep my diet colas cold.
I wanted to use a ceiling fan, but the A/C was cool enough. The bathroom was pretty spacious with plenty of hot water in the shower.
Although I didn’t have a view of the courtyard, I did get a glimpse of the street. That’s right, my window was on street level, so I could see pedestrians walking past. The window blinds provided privacy cause no one wanted to see a middle-aged man like me waddle around a room.
But because I’m on the street level, I’ve got direct access to Beach Road, and the few popular hawkers stands are just mere meters from my room. It can’t get any better than that!
The room was clean, and my towels were clean. I wish a pair of slippers were provided, though, for an extra touch. That said, if you can find a room at Rare Heritage House with a courtyard view between $35 USD and $50 USD, I think it’s reasonable. I believe rooms without windows are just a tad cheaper.
Now they do have different style room types like duplexes and windowless rooms—even rooms with a jacuzzi at an extra cost, of course. If you choose a windowless room, the price will be lower, but not by much. You get a view of the hallway. Again, there are window blinds for privacy. Also, because there are only 27 rooms, there aren’t too many people wandering around. So it’s quiet and quite relaxing, giving off a boutique hotel feeling.
There’s no swimming pool, no gym, no white glove service. Still, Rare Heritage House Penang is a fantastic place to stay for your first epic visit to Malaysia! I highly recommend it!
Read reviews and find discounts for Rare Heritage House on Agoda.com
More Good Budget Hotels in Georgetown, Penang
Victoria Garden Hotel Penang ⭐️⭐️⭐️⭐️
My friends recommend the Victoria Garden Hotel. The location is excellent. Not to mention it’s a straight shot to Penang Ferry terminal, about 10 minute walk.
I typically stay in cheaper hotels because I typically travel alone. But my friends recommend this hotel for traveling couples.
It’s right on Victoria Street in the quiet part. Though there are plenty of quaint restaurants, cafes, and nearby tourist attractions within walking distance.
Little India and Clan Jetties are not far, about 10 minute walk. Armenian Street is about a 15 to 20 minute stroll.
The typical King Rooms are a decent 25 square meters. Which runs about $80 USD and may include breakfast for 2. It’s a bargain considering the amount of international and local food choices.
This is one of the hotels I look forward to checking out during my next trip to Penang if I have some extra cash
Read reviews and find discounts for Victoria Garden Hotel Penang
Armenian Street Heritage Hotel ⭐️⭐️⭐️
Armenian Street Heritage Hotel in central Georgetown is a UNESCO Heritage Site. It’s a quiet neighborhood, just a short distance from popular Armenian Walking Street, about a 100-meter walk away.
I used to stay here quite often; the quality and style are similar to Rare Heritage House. I enjoy sitting outside, across the street at Armenian Park, writing in my journal.
Pricewise, the Armenian Street Heritage Hotel is approximately $10 USD more. But it is still worth it as the standard rooms are roughly 8 meters larger than my current favorite hotel in Penang. Also, every room has a window with an unobstructed view of the street below.
This hotel is more suited for couples and families since the rooms are slightly larger. Mainly because there are rooms with king-size beds for mom and dad, plus bunk beds for the kids.
Since two kids under 16 stay for free, this is the main reason why I highly recommend Armenian Street Heritage Hotel to traveling families.
Read reviews and find discounts for Armenian Street Heritage Hotel
Armenian House ⭐️⭐️
Right on Armenian Street, the historic core of Penang. Where popular wall art has turned the streets into a popular tourist attraction, when you stay at Armenian House, you don’t need to go far to explore Penang’s unique culture, art, and history.
Enjoy your stay at a converted classical Chinese shophouse. When I first stepped inside the room, the words “cozy” and “warm” came to mind. I prefer hotels with a modern and minimalist feel, mainly because my house is a mess.
It is a hotel and also a hostel. Meaning there are rooms with shared bathrooms and rooms with private bathrooms. If you want to stay in a shared room, the good news is that you’ll have plenty of space. Whichever rooms you decide on, it’s a fantastic, quaint hotel/hostel in the heart of Georgetown.
Read reviews and find discounts for Armenian House
Carnarvon Suites@Reunion ⭐️⭐️
This hotel property shares a similar boutique style and charm with Rare Heritage House. Not far from Kimberley Street Food Night Market and the 1st Avenue Mall, a popular shopping center in Georgetown.
Rooms are beautifully decorated with old classic charm and, of course, some modern touches, as it was renovated in 2019. When I stayed at Carnarvon Suites, I chose the garden view. It’s quiet, the beds are comfortable, and the bathroom is clean.
The hotel staff are friendly and helpful with food recommendations.
Also, a great affordable hotel in Penang for families. They offer 45 square meter rooms with 2 bedrooms for $80 USD per night. Four adults and two kids under 13 stay free. That is a spectacular bargain for families traveling on a budget!
Again, no gym for the power squats you love so much, and no swimming pool.
However, keep in mind there are no elevators. So, having large, heavy luggage could be a hassle. But the friendly hotel staff are ready to help.
Read reviews and find discounts for Carnarvon Suites@Reunion
St. Giles Wembley Penang ⭐️⭐️⭐️⭐️
Suppose you’re looking for a hotel with a view overlooking greater Georgetown, featuring a swimming pool and a gym equipped with modern facilities. In that case, St. Giles Wembley Penang is a recommended choice.
There are 30 floors, and if possible, I’d ask the hotel upon check-in if they can pick a room for you with a view of the seaside. Usually, I stay in one of the standard rooms, which are around 24 square meters. With breakfast included, I paid around $75 USD per night.
With all the fantastic food near the hotel, personally, I wouldn’t spend extra for hotel breakfast.
Opposite St. Giles Wembley Penang is the 1st Avenue Mall, and a bus station for getting around the island. But of course, you can still walk from the hotel to popular Penang hotspots. This is one of the best 4-star hotels in Georgetown!
Read reviews and find discounts for St. Giles Wembley Penang
The Granite Luxury Hotel Penang ⭐️⭐️⭐️⭐️
No doubt, travelers are looking for rooms in Penang with plenty of breathing space and room for kids to run around. If that’s you, I recommend the Granite Luxury Hotel Penang for those reasons.
And it’s not too shabby if you want to stay at a Penang hotel for a romantic holiday for couples. It’s one of the newer, taller hotel buildings in Georgetown, offering views and rooms with a jacuzzi. You get the picture.
This popular 4-star hotel is situated next to St. Giles Wembley Penang Hotel, offering easy access to the local bus station and shopping centers, all of which are conveniently located right across the street.
As mentioned before, rooms here are more spacious, ranging from the standard 34 square meters up to 45 square meters for the deluxe.
I’ve stayed in the Premium City View King room before, and it is high quality and comfortable. There’s a small swimming pool with an interesting design (you gotta see it for yourself) and a small gym.
This was a few years back, and I paid about $85 per night. I’m not a 4-star hotel kinda guy when I travel solo. So, this was a bit high, especially considering there are many budget boutique hotels in Penang that are half the price.
With that said, if you want to take your special someone to a nice romantic hotel in Georgetown, this could be it.
Read reviews and find discounts for The Granite Luxury Hotel Penang
Kimberley Hotel Georgetown ⭐️⭐️⭐️
Now back to a Penang hotel with down to earth prices in yet again a superb and convenient location. The Kimberly Hotel Georgetown offers a range of room sizes, from small, cozy rooms starting at 15 square meters to spacious family suites of up to 31 square meters.
Some rooms have windows. Some do not. So if you want a view, make sure you choose the correct room type.
I always choose their Oriental Suite room type, it’s 20 square meters, includes breakfast, and costs $55 USD per night.
Again, I prefer eating outside. There are many choices for food outside within a short walking distance. But breakfast is already lumped in with their room rates.
I particularly enjoy the balcony terrace; the street below is not noisy, and the air in Penang is clean. The wooden floors are a nice touch. Even though it’s quite a big hotel, there’s no swimming pool or gym.
The location of the hotel is also terrific for sightseeing and just wandering around the historic sections of Georgetown.
Read reviews and find discounts for the Kimberley Hotel Georgetown
Hompton by the Beach Penang ⭐️⭐️⭐️⭐️
I know some of you reading this want to find a top-quality hotel by the beach in Penang. Or perhaps earn a whopping amount of brownie points from your significant other to screw up for the entire year.
We’re talking about a private beach for cocktails—an infinity pool to laze away an afternoon with a good novel in hand. Friendly hotel staff are available to pamper you and assist you throughout your stay.
I usually stay in a deluxe room type with a partial view of the sea. That room size is 28 square meters, the bed is super comfortable for me, and the walk in shower is so lovely with modern fixtures.
At the time, I paid around $100 USD per night. If you look at the fact that it’s right on a private beach, the top-notch facilities, and beautiful guest rooms, it’s a bargain.
I always tell people I’m from NYC, and for $100 USD at an NYC hotel, you get bedbugs in a shoebox sized room.
Hompton by the Beach Penang is just a wonderful hotel, whether you’re traveling as a couple or a family with children in tow.
Although this hotel is located on the beach, you can’t walk to the historic parts of Georgetown and sample the culture and food.
Typically, I prefer walking to places, but if you’re staying at a hotel by the beach, you’ll need to use Grab Taxi to get around. That said, there are still many fantastic foods within walking distance.
Read reviews and find discounts for Hompton by the Beach Penang
So there you go, my favorite hotels in Penang! I know you will like these hotel choices. And I will continue checking out and reviewing more hotels in Penang shortly! Stay tuned for more reviews and updates.
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