Where to Stay in Penang, Malaysia: 6 Top Areas & Hotels

Aerial view of a coastal cityscape featuring high-rise buildings, residential areas, and calm ocean waters under a partly cloudy sky.

Excited to learn which is the best place where to stay in Penang? Then jump on this guide and let’s get the party started!

I’ve already compared all the amazing areas and the best hotels in the city, and categorized everything by interest and price. 

George Town is the best area to stay in Penang, as that’s where you’ll find the main attractions and some great hotels. However, if you’re not vibing with that neighborhood, there are 5 more waiting for you just below.

As always, I recommend booking your hotels in Penang in advance! This is a super popular holiday destination and the good options always sell out fast!

Quick Picks for Your Stay

If you need to make a quick decision and book immediately, I got your back! Check this list with the best hotels located in the capital George Town, from luxury to budget:

luxury hotel
A serene poolside scene at a luxury hotel with palm trees, lounge chairs, green umbrellas, and a view of the water at sunset.
mid-range hotel
A serene courtyard with numerous green plants, wicker chairs, and a tiled floor. The area features a mix of modern and tropical decor.
budget hotel
A modern hotel room with a double bed, textured accent wall, air conditioner, and a window with brown curtains.

Gurney Lodge

Best affordable accommodation in the center

Here’s the map with the 6 best areas to stay in that I will be talking about in this post, so you can visualize them:

A colorful map highlighting the best areas to stay in Penang with numbered locations and labels for easy navigation
  1. George Town: for first-timers
  2. Batu Ferringhi: for families
  3. Bukit Mertajam: for nature
  4. Tanjung Bungah: coolest area
  5. Bayan Lepas: near the airport
  6. Sungai Dua: on budget

1. George Town – where to stay in Penang for the first-time

People stand and walk in front of a Malaysia temple with intricate details and ornate decorations. The temple has a red tiled roof and several small sculptures.

If this is your first time traveling to Penang, there’s no better place to stay in than Geroge Town, the capital city!

From its historical scenery to incredible temples, colorful street art, exquisite food, and local bars, this town is definitely a place you shouldn’t miss out on!

Located in the Northeast of Penang island, George Town is a UNESCO World Heritage Site and it’s full of unique places. Check out Fort Cornwallis (map), an 18th century English fortress, the Pinang Peranakan Mansion, or the Clan Jetties (map). 

While you’re here, you’ll definitely want to explore the incredible Chaiya Mangalaram Thai Buddhist Temple (map) and the Wat Chaiyamangkalaram Temple (map) which is home one of the longest Buddha statues in the world!

These are just some of George Town’s iconic attractions! There are many others and a great way to discover them is to just go on walks around the neighborhood and many streets of this area! 

You’ll also find plenty of handcrafted and vintage shops, cafes and so much street art, especially around Beach Street (map).

After exploring the neighborhood and visiting some attractions you can head to Gurney Drive (map) and enjoy a long walk and the waterfront views!

Once the sun sets you can head to the Kimberley Street Food Night Market (map) and indulge in all the delicious traditional food and get some drinks! The nightlife is pretty fun in this area, and there are lots of bars where you can enjoy the night, I’d definitely recommend The Pokok (map). 

Luxury hotel
Collage of 3 pics of luxury hotel: a pool area with lounge chairs and palm trees, a luxurious bedroom, and the hotel's exterior featuring a vintage car.

Enjoy your stay in this 5-star heritage hotel in George Town, Penang Island, that features spacious colonial-style rooms with lounge and work areas. Spend some lazy afternoons relaxing in the outdoor swimming pool that has amazing sea views, or hit the gym early in the morning before heading out! End your day with a delicious dinner at the in-house restaurant and a refreshing drink at the bar.

Other accommodation options in George Town

Mid-Range
A bright indoor area with wicker chairs, tropical plants, and vintage furniture, including a wooden vanity with a mirror. Geometric patterned floor tiles and hanging lights are visible.

A beautiful boutique hotel with spacious rooms, a restaurant, a kid’s club and a library

Budget
A small bedroom with a brick accent wall, a bed featuring a red and white checkered blanket, a wall-mounted TV, and a nightstand with a lamp and electrical outlet.

These family-friendly rooms offer panoramic views of the city and modern amenities, including a flat-screen TV

Airbnb
A living room with a red sofa, Union Jack cushion, black and white shelving unit, and a red, black, and white checkered rug. A window with sheer curtains and a black curtain is in the background.

This Airbnb comes with sea views, a seating area and a shared pool where you can relax

Things to do in George Town

2. Batu Ferringhi – best place to stay for beach lovers

People enjoying various activities on a beach with parasailing, swimming, and lounging under a clear sky.

Want to relax and enjoy the sun on Penang’s beaches? Then this area is for you!

Located on the North side of the island, Batu Ferringhi is home to a gorgeous white-sand beach and is surrounded by nature, making it the perfect place for those who want a beach holiday! 

Batu Ferringhi has a relaxed vibe, and it offers lots of exciting water sports from paragliding to surfing! Honestly, there’s never a dull moment here! 

Start your mornings on Batu Ferringhi Beach (map) with a nice and long sunbathing and swimming session! Right near the beach, you’ll also find the Adventure Zone Theme Park (map) and the Pasar Malam Batu Ferringhi Night Market (map) which is packed with local traders selling souvenirs and yummy food!

As I mentioned Batu Ferringhi is surrounded by a national forest, called the Freedom Hill Happy Rock (map) and there are some amazing spots that you can explore there as well like the Iron Waterfall (map) and some hiking trails like Carla’s Peak (map). 

Batu Ferringhi is located a 40 min bus drive away from George Town, so if you want to head there to explore the attractions you can totally do it in a day!

Luxury hotel
Collage of 3 pics of luxury hotel: hotel room with modern decor, a bathroom with a luxurious bathtub, and an outdoor area featuring a pool surrounded by palm trees with a view of the sea and hills.

Located on Batu Ferringhi Beach, this amazing resort offers modern rooms overlooking the sea that have a balcony where you can enjoy your morning coffee! Before you hit the beach, enjoy a yummy meal at one of the 6 restaurants! The resort also has a theme park, a kid’s club, and a spa center where you can enjoy a relaxing massage session!

Other accommodation options in Batu Ferringhi

Mid-Range
A modern hotel room with a double bed, bedside tables, a lamp, a rug, a desk, a chair, and large windows overlooking greenery.

Enjoy the beach views by the swimming pool of this hotel that has a restaurant and rooms with a terrace

Budget
Outdoor seating area with a wooden table and black chairs, surrounded by lush green plants. A bookshelf filled with books is against the wall in the background.

An affordable place close to Batu Ferringhi Night Market that offers free parking and a restaurant

Airbnb
A living room with two red and black patterned couches, a coffee table, and a balcony with outdoor furniture. The room has tiled flooring, wall-mounted lights, and a ceiling fan.

This cozy apartment is great for a family and it comes with a kitchen, a shared pool and free parking

Things to do in Batu Ferringhi

  • Tyr surfing or paragliding on Batu Ferringhi Beach
  • Check out the artwork at the Yahong Art Gallery (map)
  • Visit the Penang National Park (map)
  • Stroll through the bustling Batu Ferringhi Night Market 
  • Take the kids to the Adventure Zone Theme Park
  • Explore the Freedom Hill Happy Rock Forest

Subscribe here to get up to 35% off your accommodation for your next trip!

3. Bukit Mertajam – where to stay in Penang for nature

Entrance gate to Taman Rimba Bukit Mertajam, featuring a rustic wooden archway. A small building with a red roof is visible on the left, and cars are parked in the background. Lush greenery surrounds.

Bukit Mertajam is the capital of the Seberang Perai Tengah district of mainland Malaysia, located on the Malay Peninsula, around a 40 min car drive from George Town.

You can also get to George Town by public transport, but it’ll take you around 2h. 

Even if usually ignored by tourists, this neighborhood is actually a hidden gem. It is filled with places that show the country’s cultural heritage, delicious food, and surrounded by beautiful green landscapes! 

This is a great place for those of you who are on your second visit to Penang and want to see the less touristy side of the city. It’s also a nice place for those who are seeking a more relaxed holiday far from the crowds. 

While here, make sure you explore Penang’s hills and parks! The Bukit Mertajam Recreational Forest (map) is an amazing site with so much unique flora and fauna! You can hike there and enjoy the incredible views!

The forest is also home to some beautiful Buddhist temples so there’s definitely a lot to see here!

Lastly, if you want an adventure, go trekking or biking in the jungles of Cherok Tokun Nature Park (map), where you’ll find lots of species of trees, herbs, and bushes!

Luxury hotel
Collage of 3 pics of luxury hotel: A hotel room with a bed, chairs, and a desk, a sitting area with couches and an outdoor pool with lounge chairs and umbrellas.

Treat yourself to a pampering massage at the spa and relax in the sauna or by the outdoor pool of this amazing hotel that has everything you need for your holiday in Penang. Try some local dishes at the on-site restaurant, and end the day in the comfy bed of your modern and stylish room!

Other accommodation options in Bukit Mertajam

Mid-Range
Modern hotel room with a large bed, white linens, gray headboard, and black accent wall adorned with three framed photos. Room includes a desk, chair, nightstand, and floor-length curtains.

This great hotel come with a fitness center, a sauna, family rooms and an outdoor swimming pool

Budget
A two-story house with a garden, trees, and shrubs in front. There is a white van parked by the side of the house and a multicolored umbrella near the entrance.

A great and affordable hotel that offers rooms with a kitchen and free private parking

Airbnb
A modern living room with a yellow sofa, a grey sofa, a wooden coffee table, a wall-mounted TV, a potted plant, and framed artwork on the wall.

Newly renovated, cozy home suitable for business travelers, friends, and families

Things to do in Bukit Mertajam

  • Explore the Bukit Mertajam Recreational Forest on a hike
  • Trek the hill of Bukit Berapit and reach the Temple at the top (map)
  • Immerse yourself in the jungles of Cherok Tokun Nature Park
  • Go crazy shopping at the Megamall Penang
  • Enjoy the views at Mengkuang Dam (map)

4. Tanjung Bungah – the coolest place to stay in Penang

A mosque with a tall minaret stands on stilts over the water at a beach, with several boats docked nearby and modern high-rise buildings in the background.

Situated in the Northwest of the island, just a 20 min drive away from George Town, Tanjung Bungah (Flower Cape’) is another paradisiac destination in Penang.

Once a charming and sleepy fishing village, this suburb has become a very popular and well-known beach destination for expats, offering a lot of modern accommodation options for all budgets!

But hotels are for sure not the main reason why tourists love Tanjung Bungah! This is one of the best destinations for watersports in Penang, with Penang Water Sports Center (map) based here! So if you ever wanted to try kayaking or sailing, or if you’re an avid practitioner, you can definitely head there! 

Some other fun attractions that you should check out here are the Masjid Terapung floating mosque (map) which looks so incredible! And there are also lots of fab beaches where you can enjoy the sun all day long like Tanjung Bungah beach (map).

If you’re around Tanjung Bungah on a Tuesday evening, make sure you check out the Night Market (map) for a true Penang experience!

Luxury hotel
Collage of 3 pics of luxury hotel: a bedroom, living and dining areas, an outdoor pool with sun loungers, and a city and ocean view from a high-rise building.

Chill by the infinity pool of this amazing hotel that comes with everything you need for your holiday! They offer some incredible apartments with large windows, overlooking the sea, a dining area and a small kitchenette!

Other accommodation options in Tanjung Bungah

Mid-Range
A hotel room with a neatly made bed, two bedside tables, wall-mounted lamps, two chairs near a window with curtains, and framed art on the wall.

Chill on the balcony of this apartment that boasts, free Wi-Fi, a kitchenette and a dining area

Budget
Aerial view of a tropical resort showcasing a central swimming pool, palm trees, lounge chairs, and a surrounding garden with multiple buildings featuring red roofs in the background.

Such a cool place that has a unique design, an outdoor swimming pool and parking spaces

Airbnb
A modern living room with nautical decor, featuring a TV on a black stand, striped tablecloth, and cushions with anchor designs. Two surfboards are mounted on the walls as decoration.

Beautiful villa that overlooks the sea and that has a kitchen, a washer and free Wi-Fi

Things to do in Tanjung Bungah

  • Rent a kayak from Penang Water Sports Center and go on an adventure
  • Enjoy some delicious street food at the Tanjung Bungah Night Market
  • Explore the hilly streets of the Mount Erskine area
  • Go on a walk around the Straits Quay (map)
  • Check out the unique Masjid Terapung floating mosque

5. Bayan Lepas – where to stay in Penang near the airport

Aerial view of a coastal city with high-rise buildings, a construction site, lush greenery, a beach, and a body of water under a blue sky with clouds.

Set in the Southeast part of the island around a 40 min bus drive away from George Town, this area is perfect for those of you who want to stay somewhere near the airport

Bayan Lepas is a pretty large area with lots of amazing things to do and see, including some shopping spots like the Queensbay Mall (map).

One of the most fascinating attractions here is the Snake Temple (map) where you can see, as the name suggests, some snakes! Although there are some snakes lying in the trees, most are held in special containers. 

Some other cool places that you can see here are the Penang War Museum (map) and the Jambatan Sultan Abdul Halim Muadzam Shah (map) which connects Penang Island to the mainland! This one I recommend seeing at night time when all the lights go out!

There are also some spots for those of you who want to spend some time out in nature like the Taman Awam Metropolitan Relau (map) and the Air Terjun Sungai Ara area (map).

Luxury hotel
Collage of 3 pics of luxury hotel: an outdoor pool with seating area and scenic views; two interior images show modern, well-furnished rooms with colorful carpets and contemporary decor.

Set just 3 miles (5 km) from Penang International Airport, and right next to Queensbay Mall. Sleep, this hotel offers comfy modern rooms with free Wi-Fi, an outdoor swimming pool and a spa center where you can relax after your flight! Guests will also get a free shuttle service to the airport.

Other accommodation options in Bayan Lepas

Mid-Range
A balcony with a small rectangular pool, glass railing, a table with two chairs, and a lounger, overlooking a cityscape with hills in the background.

Amazing suites with incredible panoramic views in the center of Bayan Lepas and a private pools

Budget
Hotel room with a large bed, a chaise lounge, a nightstand with lamps, and a window with sheer curtains. The walls are maroon, and there is a painting above the bed.

Spacious and cozy air-conditioned rooms with a private balcony that overlooks the city

Airbnb
A minimalist bedroom with a low bed on a wooden floor, a small crate table with a lamp, and a large window covered by dark blinds.

This cozy home has a private cinema and it’s perfect for a stay with the family

Things to do in Bayan Lepas

  • Shop until you drop at Queensbay Mall
  • Visit the unique Snake Temple
  • Learn new things at the Penang War Museum
  • Go for a walk in the Taman Awam Metropolitan Relau Par
  • Catch a sunset at Queens Waterfront (map)

6. Sungai Dua – best location to stay in Penang on a budget

Large orange "USM" letters in front of Dewan Tuanku Syed Putra building, surrounded by purple flowers and colorful flag decorations.

Sungai Dua is located a 20 min drive South of George Town in Penang, along Penang’s East coast and it has recently been renovated into a residential zone. Before that, it served as an agricultural area. 

This area is home to the Universiti Sains Malaysia, so you’ll probably see a lot of students around! This also means that the hotel prices and general costs are much lower in Sungai Dua, making it the perfect area for those of you traveling on a tight budget!

There are some bars and restaurants around but you should also try the food at the Super Tanker Food Court (map), where you’ll find lots of food stands! 

Although there aren’t lots of attractions here, you’ll still find a couple of fun things to do like hiking the Bukit Rimbah Peak (map) and going to the Sungai Dua Night Market (map).

Luxury hotel
Collage of 3 pics of luxury hotel: exterior of a modern hotel, a bedroom with a double bed and decorative pillows, and a sitting area with a couch and desk setup.

This accommodation has some amazing rooms with a comfy bed and all the amenities you need for your holiday! They also offer free parking and a paid airport shuttle.

Other accommodation options in Sungai Dua

Mid-Range
A modern, minimalistic hotel room with two white beds, a wall-mounted TV, a desk with a chair, and an open shelving unit beside the window with blinds.

A great place that comes with air-conditioned rooms that have a flat-screen TV, a desk and a refrigerator

Budget
A room with two single beds, white linens, a standing coat rack, a desk with a chair, a small vase with flowers, and a large window with curtains. The walls are decorated with floral wallpaper.

This hostel offers rooms with shared and private bathrooms and free parking

Airbnb
Modern living room with a large sectional sofa, glass coffee table, mounted TV, and floor-to-ceiling windows with dark curtains. A small dining area with table and chairs is set near the windows.

Boasting some amazing views, this condo has a large window, a balcony and a shared kitchen

Things to do in Sungai Dua

  • Grab a bite at Super Tanker Food Court 
  • Check out the stalls at the colorful Sungai Dua Night Market
  • Take a trip to Butterworth city
  • Go on a hike around Bukit Rimbah Peak (map)
👑 Luxury price:US$100
💵 Mid-range:US$70
🛏️ Budget:US$40
📍 Best area:George Town
🛎️ Best luxury hotel:Eastern & Oriental Hotel
🧳 Best mid-range hotel:Areca Hotel Penang 
👛 Best budget hotel:B Street Hotel

BONUS: Best hotels for a honeymoon in Penang

Aerial view of a couple in wedding attire lying on a sandy beach near the shoreline, with palm trees bordering the upper side of the image.

Heading to Penang for your honeymoon? Then you’ll definitely need a proper hotel for that! 

All the Penang hotels in this post have amazing facilities but if you’re looking for something a bit extra, check out the options I included below which I listed from most to least expensive.

Let’s start:

  • Bertam Resort – enjoy all the privacy secured by this incredible hotel which offers gorgeous suites with a large tub, stylish decors, a minibar and a balcony overlooking the pool where you can relax in the morning and spend the morning together! Continue your day at the space center and enjoy some cocktails and a yummy meal at the on-site restaurant.
  • Citadines Connect Georgetown – get the deluxe loft at this amazing hotel in George Town that will make you and your partner feel right at home! The private loft comes with a lot of space, a seating area and a flat-screen Tv. Start your mornings relaxing by the swimming pool and enjoying your coffee together!
  • G Hotel Gurney – Catch a sunrise in the executive suite of this hotel that has large windows overlooking the sea, a mini bar and a seating area. The accommodation also offers 2 swimming pools, a spa center and room service so you can start your mornings with a romantic breakfast in your elegant rooms. 

FAQs about where to stay in Penang

A temple with a tall white pagoda and an array of red and yellow lanterns hanging above, set against a clear blue sky.

🏨 Which is the best area where to stay in Penang?

George Town is the best area to stay in Penang, the capital city which is home to the main attractions and stunning hotels!

👨‍👨‍👧 Where to stay in Penang with the family?

Batu Ferringhi is the best area to stay in Penang with the family, offering beautiful white beaches, exciting water sports and great accommodations like Parkroyal Penang Resort

💸 Where to stay in Penang on a budget?

Sungai Dua is the best place to stay in Penang on a budget and it offers lots of affordable accommodations like U Hotel Penang.

✈️ Where to stay in Penang close to the airport?

Bayan Lepas is home to Penang’s airport so you can stay at a hotel here like Eastin Hotel Penang

⚖️ Should I stay in Batu Ferringhi Beach or George Town?

If this is your first time in Penang I’d recommend George Town and then just visit Batu Ferringhi for the beach. But if you want just a beach holiday, then Batu Ferringhi is perfect.

👍 Is Penang safe to visit?

Yes, Penang is a safe place to visit! Everyone is super friendly here but as anywhere, be mindful of your belongings and avoid secluded areas at night.

📅 How many days in Penang is enough?

I’d recommend spending 3 to 4 days in Penang, that way you can visit all the attractions and spend time at the beach.

🚶 Is Penang a walkable city?

Yes, Penang is a very walkable city however for some areas you might need to use public transport to get there.

💘 Where to stay in Penang for couples?

Batu Ferringhi is one of the best places to stay in Penang as you’ll have beach access and be pretty close to the capital too!

🍲 Best place to stay in Penang for food?

George Town is the best place to stay in Penang for food as that’s where you’ll find lots of restaurants and the Kimberley Street Food Night Market.

Final thoughts on where to stay in Penang, Malaysia

Performers dressed in white play large traditional drums on a stage with vibrant lighting and red lanterns in the background.

Who feels more than ready to take over Penang and have an unforgettable trip?

Now that you’ve read this guide on where to stay in Penang, I’m sure you feel more confident about this trip, right?

If you’re still not sure which hotel to pick (don’t worry, this happens to the best of us), then check out my 2 favorite hotels:

Just remember that Penang is a popular destination and it’s important to book your hotels here in advance!

Enjoy your holiday and as always, I’m around to help you with other details! Just drop me a comment below and I’ll answer ASAP!

Have a wonderful trip,

Elena


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