Where to Stay in Penang (Places & Areas)

Where to Stay in Penang – 4 Best Areas

Before we explore the top hotels and hostels in Penang, let’s break down the pros and cons to staying in each of the popular areas of Penang.

Most tourists will choose to stay on the north or north-east side of Penang island in one of the four following areas:

1. Georgetown Old Town

My personal pick for the best area to stay is Georgetown. The colonial old town is where all the action happens on the island and where you’ll find many of the best things to do in Penang.

It has great restaurants, fun bars, an amazing street art scene, and it oozes with culture. Plus, it’s super easy to walk around! 

With that said, staying in Georgetown means you’ll need to travel a bit to get to the beach (though with the Grab taxi app – which works like Uber – that’s easy and cheap!). 

Top Choice: Cheong Fatt Tze’s Blue Mansion 

2. Batu Ferringhi

The second most popular area to stay is the Batu Ferringhi beach area on the north part of the island. 

There are many resorts here, plus enough restaurant and bar options to keep you occupied. And you’ll have easy access to the beaches and to Penang National Park (the smallest national park in the world!). 

If you really want a lot of time relaxing on the beach, Batu Ferringhi should be where you look.

Top Choice: Rasa Sayang Resort 

3. Gurney & Pulau Tikus

Just to the west of Georgetown’s old town is the Gurney promenade area of the city. It has a slightly different feel to it than the old town, with more modern buildings (which means some really great modern hotel options). 

You’ll find great hawker food at the stalls at Gurney Plaza, not to mention plenty of places to shop. And you’re just a short ride – or long walk – away from the center of Georgetown. 

If you’re on a budget, you’ll find some more affordable options here. 

Top Choice: Vouk Hotel Suites

4. Tanjung Bungah & Tanjung Tokong

Can’t make up your mind on whether to stay in Georgetown or near the beach? You can (sorta) have it both ways by staying in Tanjung Bungah or Tanjung Tokong.

These are quieter but very developed areas with a lot more condotel and apartment options (as opposed to proper hotels).  

You’ll be close enough to Georgetown that you can get there in 15 minutes for a night out or a meal, but you also have access to a nice beach and are just a 15-minute drive from Batu Ferringhi.

Top Choice: Tanjung Point Residences

The Best Penang Hotels

Penang offers great accommodation options for every budget. From high end luxury resorts to historic boutique hotels to budget backpacker hostels, you’ll find it all in Penang. 

Finding a hotel in Penang can be a little overwhelming, so to help out, here are some of the top hotels in Penang by category: 

Best Boutique – The Cheong Fatt Tze Blue Mansion

Where else can you stay at a UNESCO World Heritage Site?

A mansion that used to belong to the famous 19th century Chinese industrialist Cheong Fatt Tze, Penang’s Blue Mansion has been featured in several movies, including the recent blockbuster Crazy Rich Asians. And, if you can afford it, you’d be crazy not to stay here!

Check out my full guide to Penang’s Blue Mansion for more.

Highlights:

• One-of-a-kind experience
• Awesome pool 
• Most Instagrammable hotel in Penang 

Best Luxury – Eastern & Oriental Hotel Penang

Also located in Georgetown’s old town area, the Eastern & Oriental Hotel (or “The E&O,” as locals call it) is a historic hotel with more than a century of history to explore. Similar to The Raffles hotel in Singapore, the E&O is a foundational part of the lifeblood of Penang – and worth a visit even if you aren’t staying here.

Guests love the gorgeous pool, the friendly hospitality, and the delicious food on offer at the Eastern & Oriental Hotel.

Highlights:

• Large stunning pool 
• Fitness center
• Perfect location in Georgetown

Business – Vouk Hotel Suites

Located in the Gurney area, just outside of the Georgetown Old Town, the Vouk Hotel Suites is a top hotel for business travelers, conferences, families, and digital nomads. It’s a new building with stylish rooms and modern amenities at a mid-range price.

Highlights:

• Stylish modern rooms 
• Super clean 
• Great for business travel

Best Resort – Hard Rock Resort Penang

The Hard Rock Penang is without a doubt the biggest resort in Penang for families with children.

There is an incredible swimming pool with tons of slides and activities to keep the little ones occupied while you relax. Plus, it’s right at the end of Batu Ferrenghi beach, and offers modern stylish rooms to boot. 

Highlights:

• Family-friendly
• Incredible pool with slides 
• Rock history galore!

Budget Option – Areca Hotel Penang

A budget hotel in Georgetown, Areca Hotel is right in the heart of Georgetown, has clean rooms, and a great breakfast. 

Highlights:

• Affordably priced
• Large clean rooms
• Highly rated breakfast

Budget Option #2 – B Street Hotel

If you like modern hotel rooms at a bargain price, check out B Street Hotel in Georgetown.

It’s a great base to explore Georgetown on foot: you’ll be right next to the coolest street art, the clan jetties, several of the museums, and some of the largest hawker centers. With clean and reasonably sized rooms, what more can you ask for?

Highlights:

• Great location in old town 
• Clean modern rooms 
• Friendly staff

Hostel – The 80s Guesthouse

Stylish and conveniently located, the 80s Guesthouse is the perfect hostel in Penang to meet other travelers.

It has a breakfast that is available late (perfect after a night out), a chill hangout space to meet other travelers, and comfortable and clean rooms. 

Highlights:

• Comfortable mattresses and clean rooms
• Great place to meet people
• Solid breakfast

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I hope this guide helped you find where to stay in Penang! It really is a lovely island.

Before you go, be sure to check out these 33 Incredible Things to Do in Penang (I think #6 is a can’t-miss thing for every traveler!).