Best Areas to Stay in Penang Island, Malaysia 🇲🇾: Best Hotels and Town

Updated on June 6, 2024
by Alex Miller

Finding the ideal spot to crash in Penang can vastly improve your traveling experience in this lively Malaysian paradise. Ranging from George Town’s vast cultural blend to Batu Ferringhi’s calm beaches, there are various neighborhoods in Penang and each has its own special characteristics. If this is your first-time visit, a family looking for fun by the beach or a couple in search of a romantic escapade, we will show you some of the best neighborhoods for your stay. Check out our highly curated roster of lodgings, they range from luxury hotels to best budget hostels, so you can have an unforgettable time while staying in Penang, the captivating island that promises the best travel adventures!

Our pick of the best hotels in Penang

Quick Guide to The Best Places to Stay in the Penang

  • 🌟 First-timers: George Town
  • 👪 Family fun: Batu Ferringhi
  • 🛍️ Urban vibes: Gurney Drive
  • ❤️ Romantic retreats: Tanjung Bungah
  • 🏢 Business hub: Bayan Lepas

1. Georgetown: best for First-Time travelers

🔝 Top Destination: George Town, a UNESCO World Heritage Site in Penang, is a must-visit for its rich blend of history, architecture, and vibrant street food. Perfect for those who visit Penang for the first time and culture enthusiasts, it offers a unique experience that captivates all who wander its colorful, narrow streets.

🎨 Street Food & Dining: George Town is renowned for its dynamic street art scene, enhancing its lanes with whimsical and thought-provoking murals. For food lovers, the area is a paradise with endless options from street food at Lebuh Kimberly to upscale dining at the historic E&O Hotel.

🏨 Accommodations & Nightlife: The neighborhood provides a diverse range of accommodation options, from luxurious heritage hotels to budget-friendly hostels. As night falls, the area buzzes with lively bars and laid-back waterfront strolls along the Clan Jetties.

📍 Ideal Base for Exploration: George Town serves as an excellent base to explore island of Penang, with efficient public transport and easy access to major attractions like Penang Hill and Kek Lok Si Temple. Its rich cultural tapestry and welcoming atmosphere promise an unforgettable experience, making you long to return.

Recommended hotels:

⭐ Best Hotels in Georgetown

  • Eastern & Oriental Hotel: This iconic heritage hotel exudes old-world charm and elegance. From the moment you step into the grand lobby, you’re transported back in time to the golden era of British colonial rule.
  • Cheong Fatt Tze - The Blue Mansion: Staying at this meticulously restored 19th-century mansion is an experience like no other. Each room is a work of art, adorned with intricate carvings, antique furnishings, and vibrant colors that reflect the rich cultural heritage of Penang.
  • Royale Chulan Penang: This luxurious hotel offers a perfect blend of contemporary comfort and traditional Peranakan style. The rooms are spacious and well-appointed, with plush bedding and modern amenities. The hotel’s prime location in the heart of George Town makes it an ideal base for exploring the Georgetown’s top attractions.

🏨 Best Cheap/Moderate Hotels

  • Ren i Tang Heritage Inn: This charming boutique hotel is housed in a beautifully restored shophouse, offering a unique glimpse into Penang’s rich history. The rooms are cozy and tastefully decorated, with a perfect blend of modern amenities and traditional touches.
  • Sunway Hotel Georgetown: This modern hotel offers comfortable and well-appointed rooms at an affordable price. This is the ideal place to stay, with many of George Town’s attractions within walking distance. The rooftop pool and bar are perfect for unwinding after a day of exploring the city.

🛏️ Best Hostels

  • Tido Hostel Penang: A unique, garden-inspired hostel located right in the heart of George Town, Penang’s UNESCO World Heritage Site, featuring comfortable beds in air-conditioned dorm rooms, a cool common hangout space, and essential amenities like free WiFi and lockers. With its prime location and youthful, eco-friendly vibe, Tido Hostel provides a comfortable and social base for exploring Penang’s best attractions like street art, temples, and hawker food stalls.
  • Aayu Stewart: Another gem from the Aayu chain, this hostel offers a perfect blend of comfort and affordability. The dorms are clean and well-maintained, with comfortable beds and ample storage space. The hostel’s prime location in the heart of George Town makes it an ideal base for exploring the city’s attractions.

2. Batu Ferringhi: Best Area to Stay on the Beach in Penang

🏝️ Tropical Paradise: Batu Ferringhi, located on Penang’s northern coast, is a tropical paradise ideal for families, beach lovers, and thrill-seekers. It offers a perfect blend of relaxation and adventure, with its best beaches, exciting water sports, and tranquil atmosphere.

📍 Convenient Location: Just a 30-minute drive from Georgetown, Batu Ferringhi serves as a great base for exploring Penang’s attractions, including the UNESCO World Heritage Site, while providing a peaceful escape from city life.

🌴 Nature and Nightlife: Close to nature reserves and the Tropical Spice Garden, Batu Ferringhi also boasts a lively nightlife with exotic night markets, beachfront bars offering live music and stunning sea views, making it an unforgettable beach getaway.

Best Hotels in Batu Ferringhi

  • Hard Rock Hotel Penang: This iconic luxury hotel is a true rock star experience! From the moment you step into the lobby, you’re surrounded by music memorabilia and a vibrant, energetic atmosphere. The hotel’s beachfront location is simply unbeatable, with direct access to the stunning Batu Ferringhi beach.

✨ 5-Star Hotel:

  • Shangri-La's Rasa Sayang Resort & Spa: If you’re looking for a luxurious and serene escape, this resort is an absolute dream. The lush tropical gardens, multiple pools, and private beach create a true oasis. The resort’s spa is a must-visit, offering a range of indulgent treatments to help you unwind.

🏨 4-Star Hotel:

  • PARKROYAL Penang Resort: This resort is a perfect blend of modern amenities and traditional Peranakan charm. The rooms are spacious and well-appointed, with comfortable beds and stunning views of the sea or the resort’s lush gardens. The resort’s beachfront location is ideal for those who want to stay on the beach or enjoying water sports.

🏨 Best Moderate Hotels

  • Ferringhi Inn Hotel: This budget hotel located right in the heart of Batu Ferringhi, just a 5-minute walk from the famous Batu Ferringhi Beach. Its prime location puts you within walking distance to restaurants and convenience stores.

3. Gurney Drive: Best Area for Shoppers and Foodies

🛍️ Shopping Haven: If you’re looking for a great place to stay in Penang, Gurney Drive is a shopper’s paradise and a must-visit area. This bustling suburb, located just a short drive from the iconic Georgetown, offers a unique blend of luxury hotels, upscale shopping malls, and a vibrant street food scene.

🏬 Retail Therapy: One of the main attractions of Gurney Drive is its incredible shopping scene. The area is home to two of best malls in Penang: Gurney Plaza and Gurney Paragon. These sprawling complexes boast an impressive array of international and local brands, as well as plenty of dining and entertainment options. Whether you’re in the mood for some retail therapy or just want to escape the tropical heat, these malls are the perfect spot to indulge.

🍜 Hawker Center Delights: Insider Tip: If you’re visiting on a weekend, be sure to check out the famous Gurney Drive Hawker Center. This open-air food court is a local favorite, offering a mouth-watering selection of most delicious food at affordable prices.

🚌 Convenient Transportation: Getting to and from Gurney Drive is a breeze, thanks to its well-connected location. The area is served by several bus routes, making it easy to reach from Georgetown and other parts of Penang.

🍽️ Culinary Adventures: Top Tip: If you’re looking for a unique way to experience Gurney Drive’s vibrant food scene, consider signing up for a food tour. These guided walks will take you to some of the area’s best hawker stalls and restaurants, giving you an insider’s perspective on Penang’s incredible culinary offerings.

Recommended hotels:

⭐ Best Hotels in Gurney Drive

G Hotel Gurney: This modern and stylish hotel is a true gem in the heart of Gurney Drive. From the moment you step into the sleek lobby, you’re greeted with a warm and inviting atmosphere. The rooms are spacious and beautifully designed, with plush bedding and all the amenities you need for a comfortable stay.

Evergreen Laurel Hotel Penang: If you’re looking for a luxurious escape, this 5-star hotel is an absolute dream. The hotel’s prime location on Gurney Drive puts you within easy reach of the area’s best shopping, dining and other exciting things to do in Penang.

Ascott Gurney Penang: For those seeking a home away from home, this serviced apartment is a fantastic choice.  The hotel’s facilities, including a swimming pool and fitness center, are top-notch.

🏨 Best Moderate Hotels in Gurney Drive

184 Gurney Drive Penang: This cozy budget hotel is a hidden gem in the heart of Gurney Drive. The hotel’s location is ideal, just steps away from the bustling Gurney Drive and all its attractions.

4. Tanjung Bungah: the Perfect Place to Stay in Penang

🌴 Peaceful Escape: If you’re looking for a peaceful and luxurious escape in Penang, Tanjung Bungah is the place to be. This quieter beachside area, nestled between the bustling George Town and the popular Batu Ferringhi, offers a serene oasis for couples and those seeking a tranquil getaway.

📍 Prime Location: One of the best things about staying in Tanjung Bungah is its prime location. Situated just a short drive from George Town, this area provides easy access to the island’s top attractions, including the UNESCO World Heritage Site, while offering a respite from the hustle and bustle of the city.

🚶‍♂️ Easy Exploration: Getting around Tanjung Bungah is a breeze, thanks to its well-connected transportation options. The main road, Jalan Tanjung Bungah, runs parallel to the beach, making it easy to explore the area on foot or by taxi.

🏖️ Stunning Beach: One of the main draws of Tanjung Bungah is its stunning beach. With its soft, golden sand and crystal-clear waters, this stretch of coastline is perfect for a relaxing day of sunbathing, swimming, or simply taking in the breathtaking views.

🍴 Culinary Delights: When it comes to dining, Tanjung Bungah offers a range of options, from casual beachside cafes to upscale seafood restaurants.

🌱 Tropical Oasis: For a truly unique dining experience, head to the nearby Tropical Spice Garden. This lush, 8-acre garden is home to over 500 species of tropical plants and herbs, as well as a fantastic on-site restaurant serving up delicious, spice-infused cuisine.

🌇 Romantic Sunsets: As the sun sets over the Andaman Sea, Tanjung Bungah offers a peaceful and romantic atmosphere. Take a leisurely stroll along the beach, or enjoy a cocktail at one of the beachfront bars while taking in the stunning views of the sunset.

Recommended hotels:

Best Hotels in Tanjung Bungah

  • Hotel Mercure Penang Beach: This modern and stylish hotel is a true gem nestled in the heart of Tanjung Bungah. From the moment you step into the sleek lobby, you’re greeted with a warm and inviting atmosphere.
  • Lost Paradise Resort: For those seeking a serene and peaceful getaway, this resort is a fantastic choice. The spacious and well-appointed rooms and villas are perfect for couples or families, with lush tropical gardens and a tranquil atmosphere that will help you unwind and relax.

🏨 Best Moderate Hotels in Tanjung Bungah

  • Flamingo Hotel By The Beach Penang: This hotel is a great option for those seeking a comfortable and affordable stay in Tanjung Bungah.  The hotel’s location is fantastic, just a short walk from the beautiful Tanjung Bungah Beach.
  • Rainbow Paradise Beach Resort: If you’re looking for a beachfront property without breaking the bank, this resort is a fantastic choice. The resort’s facilities, including a swimming pool and restaurant, are perfect for a relaxing getaway.
  • Seaview Suite at Rainbow Paradise: Just a few steps from Tanjung Bungah Beach and an 18-minute walk from Tanjung Tokong Beach, Seaview Suite at Rainbow Paradise features accommodations in Tanjung Bungah with a private beach area, a garden, and a terrace.

5. Bayan Lepas: the Best Area for Business Travelers

✈️ Airport Proximity: If you’re a business traveler or someone who needs to stay close to the airport, Bayan Lepas is the perfect area to base yourself in Penang. This modern suburb, located just a stone’s throw away from the Penang International Airport, offers a convenient and hassle-free stay for those on the go.

🚌 Well-Connected: Getting around Bayan Lepas is a breeze, thanks to its well-connected transportation network. The area is served by several bus routes, making it easy to reach other parts of Penang Island, including the popular tourist destinations like George Town and Batu Ferringhi.

🐦 Nature Attractions: For those who have some free time on their hands, Bayan Lepas offers a few attractions worth exploring. One of the most notable is the Penang Bird Park, a sprawling aviary that houses over 300 species of birds from around the world.

Penang Bird Park
Penang Bird Park
Penang Bird Park
Penang Bird Park
Penang Bird Park
Penang Bird Park
Penang Bird Park
Penang Bird Park
Penang Bird Park
Penang Bird Park

🍽️ Dining Options: When it comes to dining, Bayan Lepas may not have the same vibrant street food scene as other areas in Penang, but it does offer a decent selection of restaurants and cafes.

Recommended hotels:

⭐ Best Hotels in Bayan Lepas

  • Amari SPICE Penang: This modern and stylish hotel is a true gem in the heart of Bayan Lepas. From the moment you step into the sleek lobby, you’re greeted with a warm and inviting atmosphere.

✨ 5-Star Hotel:

  • Lexis Suites Penang: If you’re looking for a luxurious escape, this hotel is an absolute dream. The hotel’s prime location in Bayan Lepas puts you within easy reach of the area’s best attractions.

🏨 4-Star Hotel:

  • AC Hotel Penang: For those seeking a stylish and contemporary stay, this hotel is a fantastic choice. The hotel’s facilities, including a rooftop pool and fitness center, are top-notch.

🏨 Best Cheap/Moderate Hotels in Bayan Lepas

  • Olive Tree Hotel Penang: This cozy hotel is a hidden gem in Bayan Lepas. The hotel’s location is ideal, just a short drive from the airport and other attractions in the area.
  • Raia Inn Penang: If you’re looking for a budget-friendly option, this hotel is a fantastic choice. The hotel’s location in Bayan Lepas makes it a convenient base for exploring the area.
  • The Lov Penang: This cozy hotel is a great option for those seeking a comfortable and affordable stay in Bayan Lepas. The hotel’s location puts you within easy reach of the area’s attractions and amenities.

FAQs about Visiting Penang

What area of Penang to stay in?

The top recommended areas to stay in Penang are George Town, Batu Ferringhi, Gurney Drive, Tanjung Bungah, and Bayan Lepas near the airport. George Town is great for cultural experiences and first-timers, Batu Ferringhi for beach lovers, Gurney Drive for shopping/dining, Tanjung Bungah for a quieter beach area, and Bayan Lepas for business travelers.

Is it better to stay in George Town or Batu Ferringhi?

It depends on your interests. George Town is better for experiencing Penang’s cultural heritage, street food, and urban attractions as a UNESCO site. Batu Ferringhi is better if you want a beachfront resort stay with opportunities for water sports and a more relaxing vibe.

How long to stay in George Town Penang?

We recommend staying at least three days in George Town. In this time frame, you have enough time to see most of the city. If you have a few extra days, take it easy! The city is big enough to keep you entertained for a week.

How many days are enough for Penang?

While not explicitly stated, most guides suggest 3-5 days is a reasonable amount of time to experience the highlights of Penang like George Town and also spend some time at the beaches.