Where to Stay in Penang? The 5 Best Areas & Places to Stay

Penang is an island off Malaysia’s northwest coast, and it’s known for two things: George Town and the food. The capital is full of Chinese clan houses, Indian temples, mosques and buildings from the British era, and in the evenings the streets fill up with stalls frying char koay teow and ladling out assam laksa. The beaches and resorts line the north coast. So where should you stay in Penang?

Where to stay in Penang depends on whether you want city life and street food on your doorstep or a beach and a pool. Here are my five picks for areas and three hotels in each, from the most expensive to the cheapest.

Where to Stay in Penang: The Best Areas

• George Town Old Town - best area for first-time visitors
• Komtar & Jalan Penang - best area for pools, shopping and buses
• Gurney Drive & Pulau Tikus - best area for food, shopping and sea views
• Tanjung Tokong & Tanjung Bungah - best area for peace and quiet between the city and the beach
• Batu Ferringhi & Teluk Bahang - best area for beach holidays and families

Below, I go through the areas one by one with a map, transport, price level and three hotels in each. The prices come from a search for a weekend in March for two people, and 1 ringgit is roughly 17p. Expect higher prices and fewer available rooms around Chinese New Year, which falls in January or February, when George Town hangs red lanterns across the streets.

1. George Town Old Town - best area for first-time visitors 🏮

• 📍 Distance to the centre: You’re right in the historic centre of George Town, and most of the sights are within a 15-minute walk. Komtar is less than a kilometre to the west.
• 🚶 Transport: You can do most things on foot. The free CAT bus links Weld Quay, the Old Town and Komtar, and for the rest of the island you can take the bus or Grab.
• ✈️ Time from Penang Airport: Around 30 to 45 minutes by car, depending on traffic. The airport is about 16 kilometres south of George Town, and bus 401E runs directly to Komtar and Weld Quay.
• 💰 Price level: Low to high. The three hotels below cost around 160 to 1,050 ringgit (around £30 to £180) per night when I searched for a weekend in March.
• 👮 Safety: Safe, in the evening too. The main thing to watch out for is the traffic, as the covered walkways in front of the shophouses are narrow and often blocked, so you end up walking in the road.

George Town’s Old Town is on the UNESCO World Heritage List together with Melaka for its long rows of shophouses and its mix of Chinese, Malay, Indian and European architecture, brought here by trade and the British from the late 18th century. In just a few minutes you can walk from the Chinese clan house Khoo Kongsi to the Kapitan Keling Mosque and the colourful shophouses of Little India, and on the walls along Armenian Street you’ll find the murals and iron sculptures that have made the city famous on Instagram.

By the water are the Clan Jetties, small villages of wooden houses on stilts where Chinese clans have lived for generations, and Chew Jetty is the most visited. In the evening, it’s the food that draws the crowds. Penang is often called Malaysia’s food capital, and on Lebuh Chulia the stalls set up with wantan mee, satay and char koay teow once it gets dark. If you’d like help finding the best places, you can join a food tour with more than 15 tastings for around £45 per person.

See hotels in the Old Town here.

I’d stay here if it’s your first trip to Penang, or if you’ve mainly come for the food and the city. Many of the hotels are in restored shophouses and old merchants’ houses with courtyards, so you’re staying right in the middle of the history you’ve come to see. If you’re also spending a few days in Malaysia’s capital, I’ve written a guide on where to stay in Kuala Lumpur.

The downside is that there’s no beach in the city, and only a few of the small hotels have a pool. It’s hot and humid all year round, so a room with good air conditioning matters more than the view. If you want a big hotel with a rooftop pool, have a look at Komtar a little further west.

Hotels in the Old Town

Eastern & Oriental Hotel - Penang’s classic colonial hotel from 1885 with a seafront pool

The E&O is on Lebuh Farquhar on the northern edge of the Old Town, with the sea right at the end of the garden. The hotel was opened by the Armenian Sarkies brothers, who a few years later were behind Raffles in Singapore, and today it has indoor and outdoor pools, a spa and several restaurants. It scores 9.2 from more than 3,000 reviews, but it’s also by far the most expensive of my three suggestions, and a few guests mention wear and tear and lapses in the cleaning.

One guest writes on Booking.com: “The hotel met every requirement of a top hotel.”

See photos and book Eastern & Oriental Hotel here.

Yeng Keng Hotel - restored 19th-century building with a pool on Lebuh Chulia

Yeng Keng is on Lebuh Chulia close to Love Lane and the evening food stalls, in a restored 19th-century building with a courtyard and an outdoor pool. There’s a restaurant, a breakfast with both European and local dishes and free parking, and it scores 9.0. Several guests do find the rooms small, though.

From one review: “Beautiful hotel in a perfect location, central but quiet at night.”

See photos and book Yeng Keng Hotel here.

The Century Hotel George Town - budget hotel in an old-style building with a pool

The Century is at the western end of Lebuh Chulia, a few minutes’ walk from Love Lane and Armenian Street. The hotel has an outdoor pool, a bar and free parking, and the price was around 160 ringgit (around £30) per night when I searched. Several guests do say the pool area could be cleaner, though.

One guest highlights: “I loved the big, airy old-style building and the decorative details.”

See photos and book The Century Hotel here.

2. Komtar & Jalan Penang - best area for a pool, shopping and buses 🛍️

• 📍 Distance to the centre: You’re in George Town’s modern centre just west of the Old Town, and Armenian Street is about a 15-minute walk away.
• 🚌 Transport: Komtar is the island’s biggest bus hub. From here, bus 101 runs along the north coast to Batu Ferringhi, bus 204 goes to Penang Hill and bus 401E heads to the airport, while the free CAT bus runs to the Old Town and Weld Quay.
• ✈️ Time from Penang Airport: About 30 to 40 minutes by car. A taxi from the airport taxi counter costs around 45 ringgit (around £8) to Komtar, and bus 401E runs direct.
• 💰 Price level: Low to mid-range. The three hotels below cost around 240 to 545 ringgit (around £45 to £100) a night when I searched for a weekend in March.
• 👮 Safety: Safe, but there’s a lot of traffic on Jalan Penang and around Komtar. Cross at the traffic lights and keep an eye out for mopeds.

Komtar is the tall tower in the middle of George Town that you can see from most of the city, and at the top is The TOP with the glass Rainbow Skywalk almost 250 metres above sea level. Around the tower are the Prangin Mall and 1st Avenue shopping centres, and Jalan Penang, also known as Penang Road, runs north from here past shops, hotels and places to eat to Lebuh Farquhar and the E&O.

On the corner of Lebuh Keng Kwee is one of the city’s best-known cendol stalls, serving the cold dessert made with green rice noodles, coconut milk and palm sugar, and there’s often a queue on hot afternoons. From Komtar you can also take bus 204 to the lower station on Penang Hill, where the funicular takes you up to the top at over 700 metres. A return ticket costs 40 ringgit (around £7) for foreign adults, and if you’d rather have it all arranged for you, there’s a tour to Penang Hill and Kek Lok Si Temple with pick-up for around £60.

See hotels near Komtar and Jalan Penang here.

I’d stay here if you want a big hotel with a rooftop pool at a lower price than in the Old Town, or if you’re moving on by bus. You can walk to the Old Town in 15 minutes, the bus to the beach at Batu Ferringhi leaves from Komtar, and the shopping centres are a handy escape when it rains.

The downside is that the area is more concrete, traffic and shopping centres than old-world charm. Choose a hotel north of Komtar close to Jalan Penang if you want to be able to walk back from the stalls on Lebuh Chulia in the evening.

Hotels near Komtar and Jalan Penang

Fifth Avenue Hotel - five-star hotel with a rooftop pool

Fifth Avenue is on Lebuh Macallum, less than a kilometre south of Komtar. The hotel has a rooftop pool with views, a restaurant, a bar, a gym and family rooms, and it scores 8.9 from over 2,000 reviews. A few guests did feel that some of the amenities were missing from their room, though.

One guest writes on Booking.com: “The pool is excellent and just the right temperature, and the view is truly exceptional.”

See photos and book Fifth Avenue Hotel here.

Citadines Connect Georgetown Penang - modern hotel with a rooftop pool

Citadines Connect is on Lebuh Noordin, just under 500 metres from Komtar. The rooms are modern studios, and there’s a rooftop pool, a gym and a breakfast buffet with halal and Asian dishes. With over 4,400 reviews and a score of 8.5, it’s a safe choice. Several guests mention that parking can be hard to find, however.

From a review: “There was nothing to fault about the hotel, the staff were very helpful, and the room had everything we needed.”

See photos and book Citadines Connect Georgetown here.

Cititel Express Penang - budget hotel a few minutes from Komtar

Cititel Express is on Lebuh Noordin, a couple of minutes’ walk from Komtar and the airport bus. There’s no pool or restaurant, but the rooms are clean and functional, and parking is free. On the other hand, several guests say the rooms are a bit small.

One guest highlights: “The room is clean, the view is excellent, and the location is convenient.”

See photos and book Cititel Express Penang here.

3. Gurney Drive & Pulau Tikus - best area for food, shopping and sea views 🍜

• 📍 Distance to the centre: About 3 kilometres north-west of Old Town. By car it takes 10 to 15 minutes when the traffic is flowing.
• 🚌 Transport: Rapid Penang’s bus 101 runs along Jalan Burma and Jalan Kelawai just behind Gurney Drive towards both Komtar and Batu Ferringhi, but most people take a Grab to Old Town.
• ✈️ Time from Penang Airport: About 40 minutes by car outside rush hour.
• 💰 Price level: Mid-range to high. The three hotels below cost around 210 to 895 ringgit (roughly £40 to £170) per night when I searched for a weekend in March.
• 👮 Safety: Safe and well kept. There’s a lot of traffic on Persiaran Gurney, so use the pedestrian crossings when you head over to the promenade.

Gurney Drive, or Persiaran Gurney, is the seafront promenade north-west of the centre, and it’s where many well-off locals live in high-rises looking out over the Strait of Malacca. Along the road you’ll find the Gurney Plaza and Gurney Paragon shopping centres, and on the water’s edge Gurney Bay park has been laid out on reclaimed land, with paths where locals walk and jog as the sun goes down.

It’s the food, though, that draws most people out here. Gurney Drive Hawker Centre is one of the island’s best-known food markets, and in the evening you can get everything from assam laksa and char koay teow to pasembur, a salad with deep-fried vegetables, prawn fritters and a sweet, spicy sauce. In Pulau Tikus just behind, locals shop at the morning market, and on Lorong Burma the Thai temple Wat Chayamangkalaram, with its large reclining Buddha, and the Burmese temple Dhammikarama stand directly opposite each other.

See hotels on Gurney Drive here.

I’d choose Gurney Drive if you want to stay somewhere modern with a pool and sea views, with both a big shopping centre and a food market within walking distance. It also suits families and longer stays, as there are plenty of apartments with kitchens, and you can get into town and out to the beach quickly.

The downside is that Gurney Drive has no swimming beach, so you’ll need to head to the north coast for a swim, and you’ll have to take a car or bus to Old Town. The promenade is a place for a stroll, not for lying on a towel. On the other hand, you can be in Batu Ferringhi in about half an hour by car outside rush hour.

Hotels on Gurney Drive

Penang Marriott Hotel - five-star hotel with an infinity pool

Penang Marriott is on Persiaran Gurney and has an infinity pool, a gym, a kids’ club, several restaurants and a bar with a happy hour. It’s the most expensive of my three suggestions here, and it scores 8.7. A few guests feel it’s a bit far from the centre, so expect to take a Grab to Old Town.

One guest writes on Booking.com: “Good staff throughout the hotel and a lovely café.”

See photos and book Penang Marriott Hotel here.

Gurney Bay Hotel, A PARKROYAL Partner Hotel - large hotel with a pool, spa and tennis court

Gurney Bay Hotel is also on Persiaran Gurney and has an outdoor pool, a spa, a sauna, a tennis court and a kids’ club. The hotel is officially five-star, but the price was mid-range when I searched, and it scores 8.6 from more than 2,400 reviews. Some guests find the pool can be cold in the afternoon.

From one review: “The room was clean and spacious, and the location was good.”

See photos and book Gurney Bay Hotel here.

TwinTree Kelawai - simple guesthouse with a shared kitchen

TwinTree is on Jalan Kelawai between Gurney Drive and Pulau Tikus, a short walk from Gurney Plaza. It’s a small guesthouse with a shared kitchen, family rooms and free parking, but no pool or restaurant, and it was the cheapest of the three when I searched. Several guests mention that parking spaces are limited, though.

One guest highlights: “Clean, all the equipment is there, and it’s easy to get a Grab.”

See photos and book TwinTree Kelawai here.

4. Tanjung Tokong & Tanjung Bungah - best area for peace and quiet between town and beach ⛵

• 📍 Distance to the centre: Around 7 to 11 kilometres north-west of Old Town along the coast road. Straits Quay in Tanjung Tokong is closest to town, and Tanjung Bungah is a couple of kilometres further west.
• 🚌 Transport: Bus 101 runs along the coast road through both neighbourhoods towards Komtar and Batu Ferringhi. With children or late in the evening, Grab is easier.
• ✈️ Time from Penang Airport: Around 45 minutes to an hour by car, depending on traffic.
• 💰 Price level: Low to mid-range. The three hotels below cost around 190 to 375 ringgit (roughly £35 to £70) per night when I searched for a weekend in March.
• 👮 Safety: Safe and quiet. The water at the small beaches isn’t always clean, so most people prefer to swim in the hotel pool.

Between Gurney Drive and Batu Ferringhi lie Tanjung Tokong and Tanjung Bungah, two neighbourhoods where many of the island’s residents and expats live permanently, and where the hotels are spread out along the coast road. In Tanjung Tokong, the focal point is Straits Quay, a marina with restaurants, bars and shops facing the promenade, where you can sit by the water in the evening and watch the boats. And there’s still a small fishing village on the coast.

Tanjung Bungah has a couple of small beaches and the floating mosque Masjid Terapung, which stands on stilts out in the water and is one of the island’s most beautiful sights at sunset. From here it’s around 15 minutes by car to both Gurney Drive and Batu Ferringhi when the traffic is flowing, and that’s exactly why the area makes a good base if you want both the town and the beach without changing hotels.

See hotels in Tanjung Tokong and Tanjung Bungah here.

I’d choose this area if you want peace and quiet, sea views and a pool, but don’t want to stay all the way out in Batu Ferringhi. It’s also a good choice for longer stays and families, because prices are lower than by the beach, and there are supermarkets and apartments with kitchens. Several of the hotels are right on the water, so you can get a sea view for less money than in Batu Ferringhi.

The downside is that you need a car or bus to get to almost everything, and the beaches here are small. The coast road also gets packed at rush hour, so allow extra time to get into Old Town in the morning and late afternoon.

Hotels in Tanjung Tokong and Tanjung Bungah

M Social Resort Penang - beachfront design hotel with a rooftop pool

M Social is right on the beach in Tanjung Bungah and has a rooftop pool with a pool bar, a children’s pool, a gym and a restaurant with live music. The hotel has the highest score of the three, 8.7, but also the highest price. Some guests do feel the beach in front of the hotel could be cleaner.

One guest writes on Booking.com: “The private beach, which is easy to get down to.”

See photos and book M Social Resort Penang here.

Jazz Hotel Penang - large hotel with two pools close to Straits Quay

Jazz Hotel is in Seri Tanjung Pinang in Tanjung Tokong, around a ten-minute walk from Straits Quay. There’s a rooftop pool, an indoor pool, a children’s pool and a gym, and with over 3,700 reviews and a score of 8.2, it’s one of the most popular hotels in the area. The car park is high up in the building, which several guests find a hassle.

From one review: “Lovely hotel, good staff, stylishly decorated and a good location.”

See photos and book Jazz Hotel Penang here.

Golden View Serviced Apartments - budget apartments with kitchens

Golden View is on Jalan Pantai Molek in the southern part of Tanjung Tokong and has studios and two- or three-bedroom apartments, all with a kitchenette, microwave and fridge. There’s no pool, but there are supermarkets and restaurants within walking distance, and the price was the lowest of the three. Some guests have been bothered by noise from mopeds on the main road.

One guest highlights: “The apartment is very clean, and the staff are very friendly.”

See photos and book Golden View here.

5. Batu Ferringhi & Teluk Bahang - best area for a beach holiday and families 🏖️

• 📍 Distance to the centre: Around 15 to 20 kilometres north-west of Old Town along the coast road. Teluk Bahang is about 4 kilometres further west, at the end of the road.
• 🚌 Getting around: Bus 101 runs from Weld Quay and Komtar along the entire north coast to Teluk Bahang, and the journey to Batu Ferringhi takes about an hour, depending on traffic.
• ✈️ Time from Penang Airport: About an hour by car. A taxi from the airport taxi counter costs around 75 ringgit (around £14) to Batu Ferringhi, and bus 102 runs from the airport to the beaches on the north coast.
• 💰 Price level: Low to high. The three hotels below cost around 120 to 825 ringgit (around £22 to £150) per night when I searched for a weekend in March.
• 👮 Safety: Safe. Keep an eye out for jet skis and parasailing boats when you swim, and ask at your hotel whether there are jellyfish in the water.

Batu Ferringhi is Penang’s beach town, and the long, pale beach on the north coast is where the big resorts line up one after another, with pools and sun loungers right down to the sand. During the day you can hire a jet ski or try parasailing, and as the sun sets in the west, the beach bars and restaurants fill up, with fire shows on the beach in several places. In the evening, the night market sets up along the main road, Jalan Batu Ferringhi, with stalls selling clothes, souvenirs and food.

At the end of the road lies the fishing village of Teluk Bahang, where Penang National Park begins. From here, trails lead through the rainforest to Pantai Kerachut beach, which has a sea turtle centre and a lake where the water sits in two layers that don’t mix. Teluk Bahang is also home to the Entopia butterfly house and the ESCAPE theme park, which holds four Guinness World Records, including one for the world’s longest tube water slide.

See hotels in Batu Ferringhi here.

I would choose Batu Ferringhi if you want a beach holiday in Penang, or if you’re travelling with children and want a pool, kids’ club and beach all in one. It’s a good idea to spend a few nights in Old Town first and then move out here, so you get both the city and the beach. With children, Angsana Teluk Bahang, with its own water park, is also worth a look, and if you want to explore Balik Pulau and the west coast, it’s easiest with a hire car from Booking.com. Malaysia drives on the left, just like the UK.

The downside is the distance to George Town, as there’s only one road along the coast, and it can get clogged up at weekends. The beach isn’t brilliant white either, and the water isn’t always clear, so expect more buzz and water sports than turquoise sea.

Hotels in Batu Ferringhi and Teluk Bahang

Shangri-La Rasa Sayang, Penang - the island’s classic luxury resort with a large tropical garden

Rasa Sayang sits right on the beach in the eastern part of Batu Ferringhi, with a large tropical garden, several pools, a spa and a tennis court. It’s the most expensive of the three and has a score of 8.8. Some guests feel, however, that parts of the hotel seem a little dated.

One guest writes on Booking.com: “Beautiful place with fantastic landscaped gardens and pool.”

See photos and book Shangri-La Rasa Sayang here.

Bahang Bay Hotel - four-star hotel with a pool in Teluk Bahang

Bahang Bay Hotel is on Jalan Teluk Bahang, a short drive from ESCAPE and the national park and just under 5 kilometres from the night market in Batu Ferringhi. There’s an outdoor pool, kids’ club, gym and restaurant, but the hotel isn’t right on the beach. Several guests mention that the pool isn’t always clean enough.

From one review: “Spacious and clean room, and the staff were very attentive.”

See photos and book Bahang Bay Hotel here.

Ray Yan Guesthouse Penang - budget guesthouse close to the night market

Ray Yan is on a side street in Batu Ferringhi, a few minutes’ walk from the beach and about 600 metres from the night market. It’s a simple guesthouse with a shared kitchen and family rooms, but no pool, and the price was around 120 ringgit (around £22) per night when I searched. Some guests have been bothered by noise from the street.

One guest highlights: “Really good value for money! The guesthouse is clean, comfortable and Muslim-friendly.”

See photos and book Ray Yan Guesthouse here.

Where not to stay in Penang?

Bayan Lepas in the south-east of the island is dominated by the airport and large factories, and the hotels here only make sense if you have a very early flight. The same goes for Butterworth and the rest of Seberang Perai on the mainland. The hotels are cheaper, but you’ll have to cross the bridge or take the ferry to George Town, which costs 2 ringgit (around 35p) for adults, every time you want to head into the city and its food.

If you’re arriving by train or bus from Kuala Lumpur, you’ll often arrive in Butterworth, and then the ferry is the easiest way onwards. Buses also run directly from KLIA airport to Butterworth, and you can read about them in the guide to getting from Kuala Lumpur Airport to the city centre.

If it’s your first trip to Penang, I would stay in Old Town, or near Komtar if you want a pool and lower prices. If you’re travelling with children or want a beach, Batu Ferringhi is the obvious choice, and Gurney Drive suits you if you want modern accommodation with the food market just round the corner. Tanjung Tokong and Tanjung Bungah are for those who want peace and quiet, with both the city and the beach within a short drive.

Penang is hot and humid all year round, and heavy downpours can come at any time, so pack light clothing and a small umbrella. Many people combine the island with Kuala Lumpur and Singapore, and if you haven’t found your hotel in Singapore yet, take a look at my guide to where to stay in Singapore. Also check the official travel advice for Malaysia before you go.

Travel ressources & websites I use all the time 👇

• Booking.com has the best offers on hotels and unique places to stay
• GetYourGuide is the best place to book tours & activities with free cancellation
• Welcome Pickups is the best & safest place to pre-book airport transfers

Psst 👀 Have you subscribed to my Youtube channel and my Instagram where I provide more useful travel tips?