Where to Stay in Penang, Malaysia: 4 Best Areas & Hotels

Planning a trip to Penang and wondering where to stay? You’re in for such a treat!

Penang is still one of our favorite places in Malaysia. We stayed in George Town for a few nights before moving to Batu Ferringhi, and we loved how different each part of the island felt! We spent the first part of our trip soaking up Malaysian culture, and the second part relaxing by the beach, so we got a bit of everything.

And this variety is exactly why choosing the right area matters in Penang. That’s why we’ve put together this guide to help you find the best area of Penang to stay in, with our favorite hotel picks for every budget. Let’s get into it! 

Overview of the Best Areas to Stay in Penang

Penang is pretty easy to get around, but where you stay will make a big difference to how much time you spend in transit. Most visitors arrive at Penang International Airport in the south of the island, and from there, Grab is usually the easiest way to reach your hotel.

When we stayed in George Town, we walked to most of the main sights and went on an organized tour of the island’s highlights. There are also plenty of taxis around if you need them!

If you’re staying further out, renting a car can give you more flexibility. Some people rent scooters, but Malaysia has stricter rules than many other Southeast Asian countries, and reputable rental shops will want to see a valid motorbike license from your home country. We actually weren’t able to rent one because of this rule! And if you’d rather not drive yourself, you’ve always got good old Grab.

• George Town – Best for first-time visitors – This is the historic heart of Penang, so staying here puts you close to the island’s famous street food, street art, and colorful heritage buildings. Royale Chulan Penang offers a comfortable, modern stay in a great location

• Gurney Drive – Best for shopping & convenience – Malaysia is a fantastic shopping destination, so if you want to enjoy Penang’s malls and easy access to both George Town and the coast, Gurney Drive is ideal. We recommend 1926 Heritage Hotel Penang for its modern colonial design and lovely pool. 

• Batu Ferringhi – Best for beach resorts – This is where you should stay if you want to relax and enjoy Penang’s beachier side, with sandy shores and plenty of resorts. PARKROYAL Penang Resort is an amazing beachfront resort with gorgeous pools and plenty to keep both couples and families entertained.

• Tanjung Bungah – Best for a quiet, coastal stay – Tanjung Bungah is another coastal base about a 10-minute drive from Batu Ferringhi, which offers great value for money and is home to Penang’s famous floating mosque. Jazz Hotel Penang is a sleek, modern property with a rooftop pool and a convenient location right between the city and beaches.

Where to Stay in Penang 

George Town

BEST FOR FIRST-TIME VISITORS

Pros

• Very walkable 
• Amazing street food and cafés
• Packed with history and culture
• World-famous street art

Cons

• Can feel busy and hectic, especially during the day
• 20-30 minutes from the beaches 

George Town is our top pick for first-time visitors. We stayed here for the first part of our Penang trip, and we absolutely loved it! There’s SO much packed into a relatively small area, and we spent hours exploring the colorful streets on foot. Oh, and making the most of all the street food – we definitely did plenty of that! 

The historic center has been a UNESCO World Heritage Site since 2008, and you can really feel the mix of cultures as you walk around. The streets are lined with old shophouses that now house trendy cafes and independent stores, with mosques and temples all around. It really is such an interesting city to explore, even before you start ticking off famous sights. 

Speaking of which, George Town is home to many of Penang’s most iconic places. The street art around Armenian Street is probably the best-known attraction, but the Clan Jetties and Cheong Fatt Tze Mansion are also well worth seeing. 

The only downside was that it felt busy and a little hectic at times, and there was no beach to go and cool down at! But that’s precisely why we split our trip and spent a few nights by the beach after enjoying everything that George Town had to offer.

Eastern & Oriental Hotel – $$$

If you want to go all out in George Town, Eastern & Oriental Hotel is a VERY special place to stay. The E&O has been welcoming guests since 1885, and its grand colonial architecture and waterfront setting make it feel like part of Penang’s history rather than just somewhere to sleep.

The rooms are all suites, and many overlook the Andaman Sea. There are also two gorgeous swimming pools, including a seafront pool in the historic Heritage Wing, so it’s perfect if you want a bit of luxury after a hot day exploring George Town.

Plus, you’re still right on the edge of the UNESCO-listed center, so the location is fantastic for sightseeing. Rooms start from around $250 USD per night.

Alternatively, Noordin Mews is a gorgeous boutique hotel inside a restored 1920s Peranakan shophouse, so it’s packed with local character. There’s also a peaceful little pool and complimentary breakfast, making it a lovely escape from George Town’s busy streets.

We also love Cheong Fatt Tze because you can actually stay inside one of George Town’s most famous historic landmarks! The 130-year-old Blue Mansion has just 18 individually decorated rooms surrounding its courtyards, plus a beautiful garden and swimming pool.

Royale Chulan Penang – $$

For a more affordable stay with plenty of heritage charm, Royale Chulan Penang is our top pick. Part of the hotel occupies a restored building dating back to 1892, so you get some of that classic George Town character without paying the prices of the city’s luxury heritage hotels.

The location is another HUGE plus. You’ll be right in the UNESCO World Heritage area and within walking distance of many of George Town’s historic streets and sights.

There’s also a large saltwater pool and Jacuzzi, which we think you’ll be VERY grateful for after a sweaty day of sightseeing! Rooms start from around $110 USD per night, often with breakfast included.

If you’d prefer something more modern, The Granite Luxury Hotel Penang is right by Komtar and has one of the coolest pools in the city. Its elevated acrylic-bottom swimming pool lets you look straight down over George Town, so it’s definitely not one for anyone scared of heights!

The George Penang is another stylish option in a fantastic central location, with plenty of George Town’s main sights within walking distance. It also has a saltwater indoor pool, so it’s a nice choice if you want a polished city hotel rather than a traditional heritage stay.

Citadines Connect Georgetown Penang – $

If you want a modern, affordable base for exploring George Town, Citadines Connect Georgetown Penang offers fantastic value. It’s located on Lebuh Noordin, within walking distance of Prangin Mall and the historic center, so you can still explore plenty of George Town without constantly calling a Grab.

The hotel feels bright and contemporary, and there’s a rooftop swimming pool where you can cool off after sightseeing. There are also larger rooms and two-bedroom options available, so this works well for families and groups as well as couples.

For the location and facilities, we think you get a LOT for your money here! Rooms start from around $90 USD per night.

SAVV HOTEL is a fantastic alternative if you want to be right on the edge of the historic Clan Jetties, with street food and major heritage sights within walking distance. There’s also a lovely tropical garden pool, while some rooms overlook the Penang Strait and jetties.

Finally, St Giles Wembley Penang is a great pick if convenience is your priority, with Komtar and Prangin Mall just a few minutes away. The hotel also has an elevated pool and a sky bar with sweeping views over Penang, so it feels upscale in spite of the affordable price tag.

Gurney Drive

BEST FOR SHOPPING & CONVENIENCE

Pros

• Excellent shopping and dining right on your doorstep
• Handy location between George Town and Penang’s northern beaches
• Plenty of modern hotels with sea views

Cons

• Less historic character than central George Town
• You can’t walk to all of the main sights

Gurney Drive is a great choice if you like having everything close by. This waterfront area is known for its huge shopping malls and modern hotels, so it feels very different from the heritage streets of George Town. It’s especially convenient if shopping is high on your Penang itinerary, as Gurney Plaza and Gurney Paragon are both right here. Gurney Plaza alone has nine floors of stores and entertainment!

There’s more to do than shop, though. Gurney Bay has given the waterfront a whole new lease of life, with landscaped green space and a promenade that’s lovely for an evening stroll. You’re also close to sights like Wat Chayamangkalaram, which is home to an enormous gold-plated reclining Buddha.

Gurney Drive is actually named after Sir Henry Gurney, a former British High Commissioner of Malaya, and it has long been known for its seafront setting and food scene. So if you’re more into upscale restaurants than street food, you’re well catered for here! 

We think that Gurney Drive is a really convenient middle ground if you want to explore different parts of Penang. George Town is only a short Grab ride away, while Batu Ferringhi and the northern coast are easy to reach in the other direction. The trade-off is that it doesn’t have quite the same historic atmosphere as staying right in George Town, which is what we really wanted when visiting Penang.

Marriott Executive Apartments Penang – $$$

If you’re traveling as a family or staying in Penang for more than a few days, Marriott Executive Apartments Penang is an amazing luxury option. Instead of regular hotel rooms, you get huge one- or two-bedroom apartments with separate living areas, so there’s SO much more space to spread out.

The location is fantastic too, right on Gurney Drive and close to the area’s shopping malls and restaurants. There’s also an outdoor infinity pool, steam room, and 24-hour gym, so you still get all of the facilities you’d expect from a five-star hotel.

We think this is particularly good for families who want the comfort of an apartment without sacrificing the luxury resort experience. Apartments start from around $220 USD per night.

Alternatively, Penang Marriott Hotel is perfect if you’d prefer a traditional five-star hotel, with gorgeous views over Gurney Bay and an outdoor pool overlooking the waterfront. There are four places to eat and drink on-site, plus an indoor playroom for kids, so it works really well for families too.

We also LOVE The Millen Penang if you’re after something a little more special, as this beautiful new Autograph Collection hotel sits on Penang’s historic Millionaire’s Row. The glass-walled infinity pool overlooks the Andaman Sea, and there’s also a gorgeous spa and three excellent restaurants on-site.

1926 Heritage Hotel Penang – $$

For a hotel with some real Penang character, 1926 Heritage Hotel Penang is an amazing mid-range pick. This historic property was originally built in 1926 as residences for British colonial officers, and it reopened in 2026 after a huge restoration to mark its 100th anniversary!

The hotel is spread across 24 connected heritage houses, and the restoration has kept much of the original Anglo-Malay character while incorporating some sleek contemporary features. This includes a lovely outdoor pool surrounded by greenery and a soothing spa.

All in all, we like this place because it offers great facilities but more personality than a big chain hotel! Rooms start from around $120 USD per night.

If shopping is the main reason you’re staying around Gurney Drive, G Hotel Gurney is VERY hard to beat, as both Gurney Plaza and Gurney Paragon are just steps away. There’s also a gorgeous 25-meter infinity pool, plus complimentary bikes if you fancy cycling along the waterfront.

Ascott Gurney Penang is another fantastic option for families, with spacious serviced apartments and some huge two-bedroom options that sleep up to five. There are separate adult and children’s pools with water slides, and Gurney Walk’s shops and restaurants are right on your doorstep.

Gurney Bay Hotel – $

If you want sea views without paying five-star prices, Gurney Bay Hotel may be just what you’re looking for. It sits right on the waterfront, and you can choose between rooms looking over the Straits or toward Penang Hill, so we’d definitely try to snag a sea-view room if your budget allows!

The leisure facilities are definitely impressive for the price. There’s a big outdoor pool, separate children’s pool, Jacuzzi, sauna and steam rooms, and even a tennis court, so you get a LOT more than your average budget-friendly city hotel. Plus, Gurney Drive’s malls, food, and waterfront are all close by.

Rooms start at around $65 USD per night, which we think is excellent value for this location.

If Gurney Bay Hotel is fully booked for your travel dates, Forum Hotel Penang is a great no-frills alternative. It’s a clean, quiet, and comfortable hotel that sits between central George Town and Gurney Drive, and you can walk to several restaurants and convenience stores from here.

Finally, OZO George Town Penang is an excellent pick if you’d rather be closer to George Town while still having easy access to Gurney Drive. Its standout feature is the swimming pool on the 22nd floor, where you get panoramic views over the city and out toward the sea!

Batu Ferringhi

BEST FOR BEACH RESORTS

Pros

• Best area for beach resorts and pool days
• Lots of restaurants and evening entertainment
• Great base for exploring Penang’s northwest coast

Cons

• Much less convenient for sightseeing in George Town
• More touristy and resort-focused than other parts of Penang

Batu Ferringhi is our top pick if you want to combine sightseeing with a proper beach break. We moved here after a few nights in George Town, and it felt like a completely different side of Penang. It was less built up and more beachy, and there were more resorts around. Oh, and best of all, we had a long, sandy beach right on our doorstep!

We mostly spent our days here switching between the pool and the beach, as well as exploring other nearby beaches like Pantai Kerachut (aka Turtle Beach) in Penang National Park. There were watersports like parasailing and banana boating available, but the overall vibe was very chilled out. Then, in the evening, the area really comes alive thanks to its famous night market, which runs along Jalan Batu Ferringhi and is packed with stalls selling clothes and souvenirs. 

This is also a great base for exploring Penang’s greener northwest. Tropical Spice Garden is just up the road, while Entopia and ESCAPE Penang are a little further along in Teluk Bahang, so there’s plenty to do if you get restless after a couple of beach days.

The main trade-off is distance from George Town, so we don’t recommend staying here if sightseeing is your main priority. But for beach time, it’s absolutely perfect!

Shangri-La Rasa Sayang, Penang – $$$

If you want a luxury beach escape, Shangri-La Rasa Sayang, Penang is VERY hard to beat. The resort sits within 30 acres of tropical gardens right beside Batu Ferringhi Beach, and when you’re not relaxing on the sand, you’ll be enjoying the beautiful swimming pools or treating yourself at one of Penang’s best-known spas.

We love everything about this resort, from its Malay Palace design to its golf course, restaurant terrace, and well-equipped gym. It’s the perfect place to relax and unwind!

Families are welcome, but there’s also a separate adults-only pool for those traveling without kids. Rooms start from around $275 USD per night.

PARKROYAL Penang Resort – $$

For families, we think PARKROYAL Penang Resort is one of the best places to stay in Batu Ferringhi. It’s right on the beach, but the resort has SO much going on that you could easily spend an entire day here without going anywhere else.

There are two swimming pools, giant water slides, and the Amazonia Splash water-play area, plus a kids’ club with supervised activities for ages 5 to 12. Adults can escape to the St. Gregory Spa or grab a drink overlooking the sea while the kids burn off some energy!

There are also family rooms available, which makes this an especially easy choice if you’re visiting Penang with children. Rooms start from around $130 USD per night.

If your kids have even more energy to burn, Hard Rock Hotel Penang is a fun alternative, with a massive 26,000-square-foot pool complete with water slides and even underwater music! There are dedicated kids’ and teens’ clubs too, plus some fantastic family rooms designed especially for younger guests.

For something quieter, Lone Pine is Batu Ferringhi’s only luxury boutique resort and has been welcoming guests since 1948. It’s much smaller and more peaceful than the big family resorts, with gorgeous colonial character and a lovely beachfront setting.

Shangri-La Golden Sands – $

If you want a family-friendly beach resort without blowing the budget, Shangri-La Golden Sands offers a LOT for the money. It sits right on Batu Ferringhi Beach and has two lagoon-style swimming pools surrounded by tropical gardens, plus a dedicated splash zone for younger kids.

Families are really well catered for here. The Cool Zone Kids Club runs activities for children aged 5 to 12, while the huge indoor Adventure Zone has climbing equipment and some seriously impressive drop slides!

There’s enough going on to make this feel like a proper resort vacation rather than simply somewhere to sleep between sightseeing days. Rooms start from around $100 USD per night.

If Shangri-La Golden Sands is full, DoubleTree Resort by Hilton Hotel Penang is another excellent family option just outside the main Batu Ferringhi strip, with views across the Malacca Strait. There’s a kids’ club, outdoor splash pool, spa, and even an on-site teddy bear museum, so it has plenty to keep younger travelers entertained.

Tanjung Bungah

BEST FOR A QUIET, COASTAL STAY

Pros

• More local than Batu Ferringhi
• Handy location between George Town and the northern beaches
• Beaches and sea views 
• Better value for money

Cons

• Fewer major attractions within walking distance
• You’ll probably rely on Grab or a scooter to get around

Staying in Tanjung Bungah means you’ll be by the beach, but with a more local atmosphere than the resort area of Batu Ferringhi. It’s also generally more affordable, so this is a great option if you want to save money on accommodation while still being within easy reach of Penang’s best beaches.

Tanjung Bungah used to be a small fishing village before being developed into a coastal suburb, and it still feels much more residential than Batu Ferringhi. The beach here is pretty, but it’s smaller and not as appealing for swimming because the water is murky and known for jellyfish. 

Still, Batu Ferringhi is only a 10-minute Grab ride away, so you can easily get to better swimming beaches from here. Meanwhile, it takes about 25 minutes to get to George Town, so you can still plan a city sightseeing day. 

And on the upside, you’ve got the Tanjung Bungah Floating Mosque here, which is built on stilts over the water. It’s seven stories tall and absolutely huge, but it looks even more impressive at high tide, when it appears to be floating! It’s definitely one of the coolest mosques we’ve ever seen. 

Hompton Hotel by the Beach – $$$

If you want a more upscale coastal stay, Hompton Hotel by the Beach is our top luxury pick in Tanjung Bungah. All of the rooms and suites are located between the 12th and 33rd floors and offer sea views, so you don’t even need to splurge on a special room category to wake up to the ocean!

There’s also an infinity pool on the 10th floor, plus a steam room and fitness center. Families are well catered for too, with bunk-bed rooms and huge two-bedroom suites available. We think this is a great choice if you want a modern beach hotel without paying the prices of Penang’s fanciest resorts. Rooms start from around $75 USD per night.

If Hompton Hotel is fully booked for your travel dates, Flamingo Hotel is another beachfront option with a big outdoor pool and hot tub, plus a separate children’s area. It’s a good alternative for families who want plenty of space to swim and relax on the beach, and it’s only a 10-minute Grab ride from Batu Ferringhi.

Jazz Hotel Penang – $$

For something sleek, modern, and reasonably priced, Jazz Hotel Penang is a fantastic choice. Its standout feature is the rooftop infinity pool, where you can swim with views over the sea, and there’s a sea-view gym up here too if you fancy squeezing in a workout.

Technically, this hotel is in neighboring Tanjung Tokong, which puts you a little closer to George Town than the other hotels in this section. It’s right by Straits Quay, so you’ve got shops and restaurants nearby, while Tanjung Bungah and the northern beaches are still easy to reach.

The rooms are spacious and stylish, and every single one has a bathtub. Rooms start from around $65 USD per night.

If you’d prefer something with more character, Lost Paradise Resort is a gorgeous Balinese-inspired boutique resort surrounded by tropical greenery right beside the sea. It has an infinity pool made from black volcanic rock imported from Bali and an Ubud-inspired lagoon with a slide for kids.

Mercure Penang Beach – $

For an affordable beachfront stay, you really can’t go wrong with Mercure Penang Beach. The hotel is right beside a sandy beach with a sea-facing outdoor pool, so you can still enjoy that coastal vacation feel without paying Batu Ferringhi resort prices.

The hotel itself is modern and straightforward, with an on-site restaurant, bar, and gym. Best of all, you’re well positioned for exploring in either direction, with both George Town and Batu Ferringhi within easy reach.

This is exactly the kind of good-value coastal base that makes Tanjung Bungah worth considering! Rooms start from around $50 USD per night.

M Social Resort Penang is a fun alternative with spacious, modern rooms and a bold, contemporary style. The gorgeous rooftop pool and Instagram-friendly design touches definitely make this property feel more like a trendy resort than a budget hotel.

And if you’re looking for something even more wallet-friendly, Bayu Bayu Hotel by Soft Loft is one of the most affordable hotels going. It’s clean and comfortable in a great location near lots of local shops and just a 5-minute walk from Tanjung Bungah Beach.

Top Activities to do in Penang

Now that you know where to stay in Penang, it’s time to start planning what to do! There’s a lot to do on this beautiful and varied Malaysian island, from exploring gorgeous beaches and Penang Hill to eating as much street food as humanly possible. Here are some of the best things we got up to in Penang to help you plan your trip.

• Penang food tour – One of the BEST things to do in Penang is eat, so we think that this food tour is the perfect introduction to the island! Over four hours, you’ll try more than 15 different dishes while exploring the backstreets of George Town with a local foodie guide.

• Customizable island tour – If you’re short on time in Penang, this private sightseeing tour is a fantastic way to pack a LOT into one day. You’ll have a private guide and vehicle for six hours, and you can customize the itinerary to match your interests. You can visit up to seven attractions, and it’s totally up to you what you want to see and do with your guide.

• Cooking class – Penang is renowned for its incredible food scene, and this cooking class in George Town will teach you how to recreate some of the island’s most famous dishes for yourself! We recommend booking the morning class if possible, because this way you also get breakfast and a tour of Chowrasta Market to shop for spices and ingredients.

• See the countryside on a bicycle – For something completely different, this countryside cycling tour takes you through the idyllic landscapes around Balik Pulau on the western side of Penang. Over five hours, you’ll cycle past rice paddies and palm oil plantations, and visit fishing villages and small local communities that most visitors never come across. Best of all, lunch is included, and you get to eat it in a rural hut surrounded by rice fields!

• Experience George Town after dark  – We did this nighttime food and walking tour in George Town, and it was SUCH a fun way to spend an evening! It was a real deep-dive into the city’s culture and heritage, and we got to see some of its most interesting sights after dark, including Chew Jetty and Little India.

Thanks for reading!

Penang is one of those places where changing areas can feel like starting a whole new vacation! We loved beginning our trip among the colorful streets, street food, and heritage buildings of George Town before slowing things down by the beach in Batu Ferringhi. Whether you want culture, shopping, resort days, or a quieter coastal escape, hopefully this guide has helped you find the perfect Penang base!

Before you go, check out more of our Asia blogs for tried-and-tested itineraries, tours, and travel tips from our adventures around the region. Or keep scrolling for a few more of our favorite guides to inspire your next trip!

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