Penang is one of Malaysia’s most beloved travel destinations. It’s a place that effortlessly blends old-world charm with modern convenience, delicious street food with digital nomad cafés, and sleepy fishing villages with bustling street art alleys.
But figuring out where to stay in Penang can be a little overwhelming if it’s your first time. Should you stay in the heritage core of George Town? Near the beach in Batu Ferringhi? Somewhere quieter and more local?
Here’s a detailed breakdown of Penang’s main areas, who they’re best for, and some handpicked hotel recommendations to help you decide.
1. George Town
If it’s your first trip to Penang, George Town is the place to be. This UNESCO World Heritage Site is full of colorful shophouses, temples, colonial buildings, quirky museums, hidden speakeasies, street art, and hawker stalls serving some of the best food in Malaysia. You can easily walk everywhere or rent a bicycle to explore the art-filled alleys.
Best for
Backpackers, solo travelers, culture & history buffs, foodies, and anyone without a car.
Why stay here
- Rich history and street art at every corner
- Walking distance to must-visit spots like Cheong Fatt Tze Mansion, Pinang Peranakan Mansion, and Khoo Kongsi
- Tons of street food: char koay teow, nasi kandar, Penang laksa
- Vibrant yet laid-back atmosphere
- Great for budget to boutique stays
Potential downsides
- Can get noisy, where there are bars and live music at night
- Limited parking and narrow roads
- Tourist hotspots = crowds and tour groups, especially on weekends and public holidays
Accommodation picks
💸 Budget
Cocoa Mews Cafe & Homestay – A quirky and colorful backpacker favorite in the heart of Little India. Rooms are simple and compact, but the friendly hosts and communal vibe make it feel like home. Plus, the downstairs café serves great local snacks and Malaysian coffee — perfect for breakfast before exploring George Town.
24 Kimberley – A stylish and minimalist guesthouse offering both dorms and private rooms. The location is unbeatable — just steps from Kimberley Street’s famous hawker stalls — so foodies will be in heaven.
Museum Hotel George Town — Housed in a restored heritage building, this hotel is full of character, with antique-style furnishings, wooden floors, and old-school charm. It’s centrally located yet tucked away on a quieter street, giving you easy access to attractions without the late-night noise.
💰 Mid-range
Areca Hotel – This charming boutique hotel is set in restored heritage shophouses with a courtyard garden. Rooms are spacious, family-friendly, and breakfast is included.
Royale Chulan Penang – Set in a stately colonial-era building near the waterfront, Royale Chulan offers spacious rooms with a refined touch. It has a pool, gym, and on-site restaurant.
Nam Keng Hotel – Tastefully restored with elegant furniture and heritage details. It’s quiet yet centrally located, ideal for those wanting a boutique stay with a sense of history.
💎 Luxury
The Edison George Town – Stylish colonial mansion with contemporary decor, a pool, and free all-day snacks and drinks. It feels both intimate and indulgent, with impeccable service.
Eastern & Oriental Hotel – An iconic seafront hotel with old-world glamour, suites with sea views, and top-tier dining. Perfect for travelers who want classic colonial luxury.
Cheong Fatt Tze – The Blue Mansion – Stay in one of Penang’s most photographed heritage homes. Rooms are rich in character and include guided tours of the mansion.
2. Batu Ferringhi
Located about 30–40 minutes from George Town, Batu Ferringhi is Penang’s beach resort strip, with golden sands, water sports, beach bars, and night markets. It’s more spread out and resort-like, making it ideal if you’re after some sun and sea rather than history and street food.
Best for
Families, couples, and anyone wanting a beach holiday.
Why stay here
- Beachfront resorts, sea views, and plenty of space to unwind
- Popular night market with souvenirs and snacks
- Water sports and beach activities
- Close to nature: ESCAPE Theme Park, Tropical Spice Garden, and Entopia are nearby
Potential downsides
- Far from George Town (30–45 min drive)
- Public transport is limited
- The beach is swimmable, but not the clearest
- Some areas feel touristy or a little tired
Accommodation picks
💸 Budget
ET Budget Guesthouse – A basic but cozy guesthouse just a few minutes from the beach. Rooms are simple but clean, and the owners are known for being friendly. It’s one of the cheapest places to stay near the water.
Roomies Suites – A budget hotel with its own cafe, restaurant, gym, swimming pool, and even tennis court.
Lazy Boys Budget Guest House – Budget accommodation with a relaxed, sociable feel. The shared kitchen and common area make it good for longer stays or meeting other travelers. Not fancy, but has everything you need for a beach holiday.
💰 Mid-range
Lone Pine Hotel – Charming colonial-style hotel right on the beach with a chilled atmosphere. The rooms are big and many have sea-facing balconies. It’s quiet but still walkable to the night market and food stalls.
Bayview Beach Resort – An older resort with a big pool and spacious rooms. The beach is just steps away and the area is good for sunset walks. Not flashy, but solid for the price.
DoubleTree Resort by Hilton – Located slightly uphill, with great sea views and spacious rooms. It’s not directly on the beach, but there’s a shuttle and plenty of comforts. Nice option if you want a quieter, more resort-style experience.
💎 Luxury
Shangri-La’s Rasa Sayang Resort & Spa – Upscale beach resort with huge gardens, excellent breakfast, and a top-rated spa. The service is polished but friendly, and it’s a favorite for honeymooners and repeat guests. A peaceful retreat right by the beach.
PARKROYAL Penang Resort – Stylish and recently refurbished, with a big pool, direct beach access, and a family-friendly vibe. There’s a good balance of relaxation and fun activities here. It’s also close to Batu Ferringhi’s food and market scene.
- Hard Rock Hotel Penang – A lively beachfront resort with a fun, music-themed twist. The pool is massive — with water slides and a kids’ play area — making it a favorite for families, but couples and groups love it too. Rooms are modern, some with direct pool access, and there’s live music almost every night, so the vibe is energetic rather than peaceful.
3. Tanjung Bungah
Tanjung Bungah sits between George Town and Batu Ferringhi. It’s more residential, meaning fewer tourists and a more local feel. There’s a small beach, a couple of cafés, and a mix of homestays and condominiums. Great if you’re staying a bit longer or just want peace and quiet.
Best for
Digital nomads, couples, travelers on a slower pace.
Why stay here
- Less crowded beaches
- Feels more like a local neighborhood
- Close to both George Town and Batu Ferringhi
- Budget-friendly homestays and Airbnb options
Potential downsides
- Not many attractions within walking distance
- Limited nightlife or dining variety
- You’ll likely rely on Grab for transport
- Some beach areas are rocky or not well maintained
Accommodation picks
💸 Budget
Bayu Bayu Hotel by Soft Loft – Simple and clean hotel with basic rooms, just a short walk to the beach and local food stalls. It’s got a terrace and a swimming pool.
Ardour Lodge – A clean, quiet guesthouse located just a couple of minutes’ walk from a local food hawker area and a peaceful beach, giving you a more local vibe than tourist-packed zones. Rooms are basic but comfortable, with AC, private bathrooms, and self-check‑in.
Rainbow Paradise Beach Resort by LWE – Located inside the Rainbow Paradise complex, these privately managed suites offer more personality than the standard hotel rooms. You’ll get a kitchenette, balcony, and big windows looking out over the sea. It’s a great option if you want a bit more space and flexibility for a longer stay.
💰 Mid-range
Mercure Penang Beach — This beachfront hotel offers modern, international-standard rooms with direct beach access and a lovely outdoor pool. The on-site restaurant has good options for both local and Western food.
Hompton by the Beach Penang — A modern seafront hotel with clean, spacious rooms and sweeping ocean views from most floors. It’s especially popular for its infinity pool overlooking the sea, beachfront bar, and generous breakfast buffet.
The Landmark by Katana Suites – Stylish, modern serviced suites in a newer high-rise. Has pool access and a gym, plus great views from the upper floors. Good choice if you want a luxury condo vibe instead of a resort.
💎 Luxury
- M Social Resort Penang — This newly revamped resort combines a cool, modern vibe with touches of Penang’s Peranakan charm. Rooms are bright and stylish, some facing the sea, and there’s a pool, gym, rooftop bar, and a few great dining spots on-site.
4. Balik Pulau
If you’re the kind of traveller who likes escaping the tourist trail, Balik Pulau might surprise you. It’s a rural part of Penang known for orchards, nature trails, and kampung (village) life. You’ll be surrounded by greenery, with a chance to experience a quieter side of the island.
Best for
Nature lovers, artists, long-term travellers, rural escape seekers.
Why stay here
- Scenic countryside and less traffic
- Close to Penang National Park and durian farms (especially in season!)
- Local markets and small-town charm
- Best for nature walks, cycling, and retreats
Potential downsides
- Far from George Town and beaches (45+ min drive)
- Public transport is minimal
- Limited food options at night
- Not ideal for short stays or people without a car
Accommodation picks
💸 Budget
Sabay Homestay – A cozy homestay tucked in the Balik Pulau countryside, surrounded by nature. The rooms are simple but charming, with outdoor seating where you can enjoy the quiet. It’s a peaceful, no-frills place ideal for slowing down and unplugging.
Wejdan Inn – A small, locally run guesthouse with clean, modest rooms in a residential area. The owners are friendly, and it’s great if you want a convenient and affordable base in a more local setting.
- Sharina Art Space – This creative homestay‑meets‑gallery sits is set up inside repurposed shipping containers. It doubles as a café and an art space where local artworks fill the walls. With just a few simple, stylish rooms, a swimming pool, and a friendly, artsy vibe, it’s perfect for travelers who love community and creativity.
💰 Mid-range
Nature Fruit Farm Resort – Spacious, well-equipped rooms and villas within a fruit farm setting. There’s a pond, garden trails, and a communal kitchen if you feel like cooking. A good option for small groups or families who want nature without roughing it.
Mai Paddy Cottage – A cute little cottage with sweeping views of rice fields. It’s quiet, breezy, and perfect if you’re looking for something simple but photogenic.
💎 Luxury
Malihom Private Estate – High-end hilltop retreat with individual wooden pavilions, each with unique views. Meals are included, and there’s a pool with panoramic scenery — perfect for couples or solo travelers wanting a reset. It’s remote, peaceful, and incredibly photogenic.
Fig Tree Hill Retreat (Private Villas) – Located halfway between Balik Pulau and Bayan Lepas, these private wooden villas come with their own plunge pools, open-air showers, and jungle views. Ideal for small groups or couples who want space, privacy, and nature in one package. Just know the road up is steep and narrow, so come prepared.
- Green Acres Treehouse Farmstay — Nestled deep within a 16-acre organic orchard, this double-story wooden and bamboo treehouse is built around an almost-century-old durian tree and offers total privacy for couples (with space for a small family). It runs on solar power, uses spring-water plumbing, and has no walls — just blinds opening directly to nature, making it perfect for birdwatchers and nature lovers. Each stay includes an orchard tour, fruit tasting, and hearty farm breakfast.
5. Bayan Lepas
Bayan Lepas isn’t really for tourists, but if you’re flying in and out quickly or here for work, staying near the airport and Penang’s tech hub might be practical. It’s also close to Queensbay Mall and a few hidden food gems.
Best for
Business travelers, quick stopovers, transit passengers.
Why stay here
- Very close to Penang International Airport
- Convenient if you have an early flight
- Accessible by Grab or bus from other parts of the island
- Near Queensbay Mall and large supermarkets
Affordable hotel options
Potential downsides
- Lacks charm — more concrete than character
- Not walkable or tourist-friendly
- Far from most attractions
- Feels corporate and bland unless you have a reason to be here
Accommodation picks
💸 Budget
Island Hostel Bayan Lepas Airport – A straightforward, no-frills hostel close to the airport, with dorms and private rooms. It’s clean, affordable, and works well if you’ve got an early flight or just need a short overnight stay. There’s not much in the immediate area, but Grab rides are cheap and easy.
Dusun Indah Cottage – A cozy countryside stay surrounded by greenery. Located 5 km from the airport and 15 minutes’ walk to Teluk Bayu Beach. It feels very local, with basic comforts and a friendly local family running the place.
U Hotel Penang – Affordable and nicely designed for a budget hotel, with a boutique feel. It’s close to local food spots and industrial areas, so it’s popular with local business travelers. Good Wi-Fi and comfy beds round it off.
💰 Mid-range
Olive Tree Hotel – Clean, contemporary hotel with a pool, gym, and solid facilities. Located in Bayan Lepas’s business district, it’s especially convenient if you’re attending events or flying out soon. Rooms are spacious and modern, and there’s a café on-site.
Amari SPICE Penang – A newer hotel located next to the Penang SPICE Convention Centre. It’s polished and professional, with stylish rooms and a lovely rooftop pool. Best suited for business travelers or events, but still welcoming for leisure guests.
AC Hotel by Marriott Penang – Sleek, business-friendly hotel with big rooms, a pool, and conference facilities. It’s close to Penang Golf Club and the airport, making it practical for work trips or quick stays. A reliable name for comfort and service.
💎 Luxury
Lexis Suites Penang – All-suite hotel with private plunge pools and saunas in every room. Located right on the beach in Teluk Kumbar, about 10 minutes from the airport. Feels luxurious and relaxing, perfect for a final night of pampering before a flight.
Eastin Hotel Penang – A popular 4‑star hotel beside Queensbay Mall. It offers smart, modern rooms, a big outdoor pool, spa, and a fitness center. Guests love the spa and enjoy the international buffet breakfast and walk‑to‑mall dining options.
- Iconic Marjorie Hotel, Penang, a Tribute Portfolio Hotel – A stylish, Marriott Tribute‑Portfolio property, with a free shuttle to Queensbay Mall. The design blends modern touches and Peranakan flair. It also offers a rooftop pool, fitness center, and a cozy lounge for evening drinks.
TL;DR: Where should you stay in Penang?
| Area | Best for | Pros | Cons |
|---|---|---|---|
| George Town | First-timers, foodies, heritage lovers | Walkable, full of history, endless food | Crowded, noisy, limited parking |
| Batu Ferringhi | Beach vacations, families | Sea views, night market, relaxed | Far from town, touristy |
| Tanjung Bungah | Quiet getaways, remote workers | Peaceful, local, affordable | Not central, low nightlife |
| Balik Pulau | Nature & slow travel | Rural beauty, durians, off-the-grid | Far, needs own transport |
| Bayan Lepas | Airport layovers, business trips | Practical, mall nearby | Boring for tourists |
Additional tips
Penang is small, but traffic is real. If you’re short on time, stay in George Town so you don’t waste hours in a Grab car.
Grab (the app) is your best friend. Most places aren’t walkable outside of George Town, but Grab rides are cheap and reliable. See what other apps are the most useful for traveling in Malaysia.
Book early during Malaysian public holidays and school breaks. Penang is a favourite local destination, and accommodations fill up fast. Check Malaysia’s public holiday calendar here.
Final thoughts
Choosing where to stay in Penang really depends on what kind of experience you’re looking for. Penang has plenty of options to match your pace and personality. No matter where you base yourself, the beauty of Penang is that it’s compact enough to explore with just a Grab ride or two. You can be enjoying street art and cendol in George Town in the morning, and watching the sunset by the beach in Batu Ferringhi by evening.
🏝️ Still planning your Penang trip? Check out my Penang Travel Guide for must-do activities, local eats, and tips.
And if you’re heading elsewhere in Malaysia, don’t forget to browse the rest of my blog for more tips and destination guides.
Have you stayed somewhere amazing in Penang? Share your experience in the comments below!
