Penang is bursting with excitement and fun. It has stunning beaches, vibrant nightlife, delicious food and tropical drinks, all for a ridiculously affordable price.
There are a number of neighborhoods on offer, so deciding where to stay in Penang can be a challenge. That’s why we’ve created this guide, to give you the lowdown on the coolest places to stay in this awesome city.
We’ve also included the best accommodation and things to do in each area, so you can choose the place that’s right for your travel style and budget.
So, let’s get to it!
Looking for a specific place to stay? These are our highest recommendations for places to stay in Penang.
Central Apartment – Great for City – Breakers | Best Airbnb in Penang
Stay right in the cultural heart of Penang in this gorgeous George Town apartment. This affordable and well-maintained property is the perfect starting point from which to explore Penang’s eclectic city center.
Iconic Hotel | Best Hotel in Penang
This four-star hotel has an ideal location for exploring Bukit Mertajam, and has has many dining, sightseeing, and nightlife options on its doorstep. This hotel offers a sauna, an outdoor pool, luggage storage, and an airport shuttle. Thanks to its facilities and proximity to the center, this is our top hotel in Penang.
Kimberley Old House | Best Hostel in Penang
This hostel provides clean and comfortable accommodation at a very affordable price. Located centrally on Penang’s oldest street, you’ll be within walking distance of the best things to see in the city. Free Wifi and towels are included, and dorms or private rooms are available.
Kimberley Old House is one of our favourites in Penang but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.
George Town
George Town is the capital of Penang Island. It’s the second biggest city in Malaysia and is home to more than 700,000 people. A UNESCO World Heritage Site, George Town has an abundance of churches and temples, pre-war and architecture
Sungai Dua
Sungai Dua is a small town set mid-way along the east coast of Penang, south of George Town. A former agricultural area, Sungai Dua was developed as a residential zone in the early-1970s after the Universiti Sains Malaysia was established nearby
Batu Ferringhi
Batu Ferringhi is nothing short of paradise. Located on the north shore of Penang Island, this neighbourhood is known for white-sand beaches and stunning views, luxury hotels and mindblowing restaurants
Bukit Mertajam
Bukit Mertajam is our favourite neighbourhood located across the Straits of Malacca from Penang Island. The capital of the Seberang Perai Tengah district, Bukit Mertajam doesn’t typically fall on the radar of tourists
Tanjung Bungah
Tanjung Bungah is a stunning seaside neighbourhood located on the northern coast of Penang. It’s tucked between lively George Town and vibrant Bat Ferringhi and is skirted by lush, low hills
Penang is an island state that covers nearly 1,050 square kilometres, and is one of the most popular places to stay in Malaysia for travelers. Getting between the smaller neighborhoods in Penang can be a bit difficult, so its crucial you pick an area that suits your needs.
George Town is the capital and largest city on Penang Island. It is a clean, safe and walkable city where you’ll find colonial architecture, historic landmarks, distinctive cuisine and atmospheric culture. With so much to explore, it’s the best place for anyone visiting for the first time.
South of George Town is Sungai Dua. This area is centred around the Universiti Sains Malaysia, creating a youthful neighborhood. Here, you’ll find flavourful food and comfortable accommodation at affordable rates – perfect if you’re traveling on a budget.
Batu Ferringhi is an area known for its vibrant nightlife, and is home to one of Malaysia’s best beaches. Visitors here can enjoy a number of water sports, great bars and popular restaurants.
Bukit Mertajam is located on the mainland, and is the coolest place to stay in Penang. Off the usual tourist path, this neighborhood is filled with interesting heritage, delicious food, and is closer to nature.
Finally, Tanjung Bungah is our top pick for families visiting Penang. It’s a friendly seaside town full of activities and water sports for all ages, so your trip can be as lively or laid-back as you like it!
Still not sure where to stay in Penang? Don’t worry, we’ve got you covered!
Penang’s 5 Best Neighborhoods to Stay in
Now, let’s take a closer look at the five best areas in Penang. They all offer something different, so there’s something to suit everyone.
1. George Town – Where to Stay in Penang for the First Time
A UNESCO World Heritage Site, George Town is the capital of Penang Island. The city has an abundance of churches, temples, pre-war architecture, and a lively arts and culture scene.
From markets and hawker stalls to high-end restaurants and chic lounge bars, this city is also bursting with delicious food. With so much to do, George Town is the best place to stay to get to know Penang.
Central apartment great for City – Breakers | Best Airbnb in George Town
Situated yourself right in the cultural heart of George Town in this wonderful Penang Airbnb. This affordable and well-maintained place is the perfect base from which to explore Penang’s city centre.
Campbell House | Best Hotel in George Town
This fantastic four-star hotel provides comfortable and air-conditioned rooms with modern amenities. There’s also a terrace, a stylish lounge bar and a restaurant for guests to enjoy on-site.
There are plenty of shops and tourist attractions nearby, making it an ideal place to stay in George Town.
Noordin Mews | Best Hotel in George Town
This stunning hotel in George Town is within walking distance of the best places to visit in Penang, including Komtar and the Heritage Area. The hotel is highly recommended for its food and also offers a pool, library, and wellness services. Rooms are spacious and come with free Wifi, aircon, and a flatscreen TV.
Kimberley Old House | Best Hostel in George Town
This hostel provides clean and comfortable accommodation at a very affordable price. Located centrally on Penang’s oldest street, you’ll be within walking distance of the best things to see in the city. Free Wifi and towels are included, and the hostel provides dorms and private rooms. Laundry and bike hire services are also available.
Kimberley Old House is one of our favourites in Penang but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.
Things to See and Do in George Town:
- Admire the colonial architecture of Wisma Kastam.
- Browse the stalls at the Night Market.
- Enjoy a breath of fresh air in Penang Hill.
- Excite your senses in Little India.
- Go for a stroll along Gurney Drive.
- Visit Penang National Park for some of the best hiking in Malaysia.
- Marvel at the Goddess of Mercy Temple.
- Party all night long at the bars and clubs on Upper Penang Road.
- See the Made in Penang Interactive Museum.
- Step back in time at the Penang State Museum.
- Take a graffiti spotting tour through the city.
- View the 33m tall statue of Buddha at Wat Chaiyamangalaram.
- Walk across the Rainbow Skywalk, a glass walkway suspended 250m above sea level.
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View on Osprey View on REI2. Sungai Dua – Where to Stay in Penang on a Budget
Sungai Dua is a small town set mid-way along Penang’s east coast. A former agricultural area, Sungai Dua was developed as a residential zone in the early-1970s after the Universiti Sains Malaysia was established.
This is also where you’ll find a vast array of cheap accommodation catering to the budget backpackers in Malaysia. From cheap and cheerful to hip and rustic, Sungai Dua is a welcoming and affordable area.
Make a saving with a houseshare | Best Airbnb in Sungai Dua
This private room in Sungai Due is suitable for couples or solo travelers. Guests have access to all amenities needed for a comfortable stay, including wifi, laundry facilities and access to the kitchen.
M Qube Hotel | Best Hotel in Sungai Dua
This charming hotel in Sungai Dua is strategically located close to restaurants, sightseeing and more. This hotel has 42 recently refurbished rooms with A/C, slippers and relaxing beds. They also provide a car rental desk, a ticket service and on-site luggage storage.
USM Designer Dwell | Best Hotel in Sungai Dua
USM Designer Dwell is comfortable and colourful property located in Sungai Dua. It is a short walk to Universiti Sains Malaysia and there are plenty of dining options at its doorstep. Rooms in this charming hotel are equipped with modern amenities, including wifi and A/C.
U Hotel Penang | Best Hotel in Sungai Dua
This excellent three-star hotel has comfortable and clean rooms with air conditioning and contemporary features. A short ride from George Town, this hotel is ideally located for enjoying Sungai Dua and exploring Penang.
Things to See and Do in Sungai Dua:
- Choose from a dozen diverse food stalls at the Sri Nibong Cafe, a small hawker centre.
- Devour savoury Asian food at Kampar Fish Jelly Restaurant.
- Dine on delicious dim sum dishes at Maxim Dim Sum Restaurant.
- Don’t miss the chance to eat all the food at Super Tanker Food Centre, a renowned spot for hawker food.
- Eat, shop and drink your way through the colourful Sungai Dua Night Market.
- Hike the nearby Bukit Jambul trail.
- Rent bikes and tour the region on two wheels.
- Sample sweet, savour unique and diving pancakes at Aki Pancake.
3. Batu Ferringhi – Best Area to Stay in Penang for Nightlife
Batu Ferringhi is nothing short of paradise. Located on the north shore of Penang Island, this neighborhood is known for white-sand beaches, luxury hotels ,and restaurants.
This Malaysian oasis is home to some of the best bars, pubs, restaurants and lounges on the island. From a romantic meal to a few cocktails at sunset, you’ll find it in Batu Ferringhi.
Photo: Mohd Fazlin Mohd Effendy Ooi (Flickr)
Spot on the beach, prime for a party | Best Airbnb in Batu Ferringhi
This apartment is situated in between all the action, close to the beach and best bars in the area. The Night Market is also a short walk away.
The Airbnb in bright and spacious, and comes with a large kitchen and wifi. It’s a great space to relax and unwind after a big night on the town.
Baba Guest House (by the Sea) | Best Guest House in Batu Ferringhi
This family-owned guest house is just a stone’s throw from Batu Ferringhi Beach. It’s also a five-minute walk to the main street where there are plenty of restaurants, bars and shops.
Rooms come complete with mosquito nets and air conditioning, so you’ll get a comfortable night’s sleep for a great price.
PARKROYAL Penang Resort | Best Hotel in Batu Ferringhi
The PARKROYAL Penang is a stunning five-star resort. It has a private beach, a swimming pool, bicycle rental and an on-site bar. There’s also a stylish lounge and restaurant, perfect for kicking off a great night.
Sea View Apartments | Best Apartment in Batu Ferringhi
Guests staying in these apartments can enjoy access to the pool, fitness centre and free wifi. Each apartment includes two double bedrooms, as well as a kitchen, dining and living area. Free parking is also available – perfect if you’re hiring a car to get further afield.
Things to See and Do in Batu Ferringhi:
- Bask in the sun at the famous Batu Ferringhi Beach.
- Eat delicious local cuisine at Ferringhi Garden.
- Enjoy a romantic meal with stunning sea views at Sigi’s Bar & Grill.
- Indulge in tasty Malay dishes at Living Room Café Bar & Gallery.
- Sample exotic drinks at Bay Lounge Lobby Bar.
- See a beautiful display of fine Batick art at Yahong Art Gallery.
- Sip cocktails at Feringgi Bar.
- Stroll through the bustling Batu Ferringhi Night Market.
- Take in the view over drinks at Bora Bora by Sunset.
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Grab an eSIM!4. Bukit Mertajam – Coolest Place to Stay in Penang
The capital of the Seberang Perai Tengah district, Bukit Mertajam doesn’t typically fall on tourist radars, making it the perfect off-the-beaten-path destination.
This is a great place to stay if you’re looking to get back to nature and explore the hills and parks of Penang. From its central location, you can hike, bike, trek, and explore the beautiful natural attracions Penang.
OYO 510 Sri Indar Hotel | Best Budget Accommodation in Bukit Mertajam
Budget rooms in this hotel are furnished with all the basics, including toiletries, TVs and private bathrooms. Guests can also enjoy a free breakfast throughout their stay. The centre of Bukit Mertajam is a short walk away, and more of Penang’s best attractions can be easily reached by car or public transport.
Iconic Hotel | Best Hotel in Bukit Mertajam
This four-star hotel has many dining, shopping, sightseeing and nightlife options at its doorstep. It offers a sauna, an outdoor pool, airport shuttle and luggage storage – so you can be comfortable no matter how long you stay.
Vangohh Premier Hotel | Best Hotel in Bukit Mertajam
Rooms in the Vangohh Premier are outfitted with modern features and essentials. This five-star hotel boasts a swimming pool and valet parking, as well as free wifi. There’s also an in-house restaurant and bar, perfect for unwinding after a long day of exploring.
Spacious 3-Pax Apartment | Best Airbnb in Bukit Mertajam
Live like a local in this Airbnb in Penang! The apartment is bright and spacious, and comes with all the amenities needed for a comfortable stay. Wifi and laundry facilities are included, and the property boasts free parking and a garden. Local markets are closeby, and public transport is available for easy city access.
Spacious 3-Pax Apartment is one of our favourites in Penang but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.
Things to See and Do in Bukit Mertajam:
- Admire the beautiful architecture of St. Anne Church – one of the coolest places to visit in Penang.
- Dine on duck egg char koey teow, a local delicacy.
- Explore the lush and sprawling Bukit Mertajam Recreational Forest.
- Get back to nature at Bukit Berapit, a hill full of durian, mangosteen and nutmeg trees.
- Go to the Bukit Mertajam wet market.
- Marvel at the Pek Kong Cheng.
- Shop until you drop at Megamall Penang.
- Strap on your hiking boots and head up Tokun Hill.
- Trek through the jungles of Cherok Tokun Nature Park.
- Visit the Mengkuang Dam, the largest dam in Penang and where you can enjoy a variety of water sports.
5. Tanjung Bungah – Best Neighborhood in Penang for Families
Tanjung Bungah is a family-friendly and safe area of Malaysia located on the northern coast of Penang. It’s tucked between lively George Town and vibrant Bat Ferringhi and is skirted by lush, low hills.
A haven for water sports and aquatic activities, Tanjung Bungah is a neighborhood where you can try your hand at almost anything.
Treat the family with this stylish apartment | Best Airbnb in Tanjung Bungah
This apartment sleeps up to four guests and has two bathrooms. There’s also a full kitchen for preparing home-cooked meals, and parking is available on-site.
There’s a gym and swimming pool available for guest use in the block. It’s right next to Marina Straits Marina and Quay, and there are a number of cafes to explore.
Rainbow Paradise Beach Resort | Best Hotel in Tanjung Bungah
Enjoy four-star luxury at a fraction of the price at this excellent Tanjung Bungah resort. It offers large rooms with private balconies and kitchenettes, and guests can enjoy a full breakfast each morning. The resort also boasts a swimming pool, tennis courts, a modern gym and a relaxing spa.
Lost Paradise Resort | Best Hotel in Tanjung Bungah
Families will love staying at this stunning Penang hotel. Set in Tanjung Bungah, this hotel is stone’s throw from the beach and delicious Penang restaurants. It offers an outdoor pool, a private beach and a pool just for kids!
DoubleTree Resort By Hilton Hotel Penang | Best Hotel in Tanjung Bungah
This DoubleTree Resort is ideal for families, offering large rooms with on-demand movies and stunning sea views. They provide a variety of services including an airport shuttle and childminding. There’s also free wifi, a swimming pool and an in-house restaurant – so you can enjoy a stress-free stay.
Things to See and Do in Tanjung Bungah:
- Browse more than 150 retailers and shops at Island Plaza.
- Dine on delicious seafood at Blue Reef Fish & Chips.
- Eat yummy shellfish and seafood at Crab Village Restaurant.
- Hike to the top of Mount Erskine and enjoy the panoramic views.
- Shop for clothes, accessories and more at the massive Straits Quay Mall.
- Rent boats, kayaks, and canoes from Penang Water Sports Centre.
- Snack and sample your way through the Tanjung Bungah Night Market.
- Snap a picture of the beautiful Floating Mosque.
- Switch it up and eat filling German fare at Ingolf’s Kneipe German Restaurant.
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Hide Yo’ Money!FAQ about Finding a Place to Stay in Penang
Here’s what people usually ask us about the areas of Penang and where to stay.
What To Pack For Penang
Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.
Ear Plugs
Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.
Hanging Laundry Bag
Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.
Sea To Summit Micro Towel
Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.
Monopoly Deal
Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.
Grayl Geopress Water Bottle
Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!
Check out my definitive Hotel Packing list for even more top packing tips!
Don’t Forget Travel Insurance for Penang
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
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Final Thoughts on Where to Stay in Penang
There are so many reasons to visit Malaysia, and Penang specifically. From cultural attractions and unique cuisine to stunning beaches and vibrant nightlife, there’s something for everyone..
Georgetown is the best destination for anyone visiting Penang for the first time, and is home to a number of great accommodation options. If you’re still unsure, you can’t go wrong staying at the Kimberley Hostel.
The Iconic Hotel in Bukit Mertajam is another great option. This hotel is centrally located and offers great wellness features, like a sauna and swimming pool.
- Check out our ultimate guide backpacking around Malaysia.
- Figured out where you wanna stay? Now it’s time to pick the perfect hostel in Penang.
- Or… maybe you want to check out some Airbnbs in Penang instead.
- Next up you’re gonna need to know all the best places to visit in Penang to plan your trip.
- Planning out an itinerary for Penang is a great way to maximise your time.
- Swing by our super epic backpacking packing list to prep for your trip.
- Our in-depth Southeast Asia backpacking guide will help you plan the rest of your adventure.
And for transparency’s sake, please know that some of the links in our content are affiliate links. That means that if you book your accommodation, buy your gear, or sort your insurance through our link, we earn a small commission (at no extra cost to you). That said, we only link to the gear we trust and never recommend services we don’t believe are up to scratch. Again, thank you!
