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If you are looking for cheap hotels in Georgetown Penang 2026 this is the guide for you. Georgetown has LOTS of hotels. However, there are not many budget hotels in Georgetown. AND of the cheap options some can be very grotty! So we have done the legwork for you by compiling a list of THE BEST budget hotels for you.
We have traveled on a shoestring budget and spend a lot of time trying to find the best budget hotels. MOST hotels in Penang cost in the range of £60 – £200 per night. The hotels in this guide cost between £5 – £30 per night. At the cheapest end we feature beds in shared dorms. Some of our more expensive options include ensuite private rooms.
THE BEST cheap hotels in Georgetown Map
THE BEST cheap hotels in Georgetown SUMMARY
| Budget hotel in Penang | SUMMARY | Price Range | Ratings |
| Kimberly Old House | Cheapest budget hotel in Georgetown. Simple, clean dorms. Excellent location. | £5 – £10 | 7.6 |
| Sim City Stay | Very cheap and a great option for families. Right by the jetties. Seaview rooms available. | £7 – £20 | 7.7 |
| The 80’s Guest House | Excellent location and nice styles. Dorms and private rooms available. | £10 – £20 | 8.2 |
| The Frame Guesthouse | Great location near little India. Range of dorms and private rooms available. Well designed facilities. | £10 – £30 | 8.4 |
| Grand FC Hotel | Clean, simple and well located in Georgetown. Small neat rooms. | £20 – £30 | 8.3 |
| Loop on Leith Hotel | Fantastic stylish rooms. Excellent facilities and amenities. New renovated hotel. Clean and good natural light. | £20 – £30 | 8.2 |
| Lang Hoose | Stylish retro-vintage hotel. Nice rooms with private bathrooms. Can accommodate up to 4 guests in their largest room. | £20 – £70 | 8.8 |
What to expect at BUDGET hotels in Georgetown

Every budget hotel in Georgetown will have its own unique things to compromise. The challenge of finding a good cheap hotel in Georgetown is finding a property where the negatives don’t bother you. Here are some things you may need to compromise on…
- Small rooms
- No privacy (shared dorms or shared bathrooms)
- No natural light / external windows
- No restaurants or cafes on site
- No breakfast with rooms
- Partially staffed receptionist desks
- Lack of wifi or slow wifi
- Uninspiring locations (to be fair Penang is pretty inspiring in its own right)
Most budget hotels in Penang do at least offer the following things:
- Private lockable rooms
- Small ensuite bathrooms with electric heated showers
- Air conditioning
If you are looking for a budget hotel in Georgetown be aware that some properties at the lower end of the price range are not nice. Lack of hygiene, bed bugs and mold can be an issue for budget hotels in Georgetown. We have only included hotels with a reasonable level of hygiene.
1 Kimberly Old House

Kimberly Old House is one of the best cheap hotels in Georgetown. This charming little hostel has a lot of character and is excellently located for the money. The Kimberly old house is located very near Komtar which is an excellent central location in georgetown, close to plenty of street food, restaurants, coffee shops and the Komtar mall. CHECK latest prices at the Kimberly Old House.

The Kimberly old house has a fun sociable vibe and provides clean, simple and comfortable accommodation for your stay in Georgetown. Rooms range between £5 and £10 per night and include six beds dormitory options and private rooms with a shared bathroom. Rooms have A.C. which is great for the price.

The Kimberly old house is a great option for solo travelers and couples. However, this is not a great option for families. The largest room is a double room and can accommodate 2 people. Furthermore, we do not recommend families to stay in the dormitories because each person needs to pay for a bed. This adds up quickly. So for a family of 3, this would be £15 for a bed each in a dorm. You can find plenty of private rooms for this price.

The Kimberly old house really is a snatch for Georgetown. Given that the average price of hotels in Georgetown is over £50 per night, and many of the budget hotels started around £20 per night this is the cheapest and best option if you are traveling on a serious budget.
2 Sim City Stay

One of our favourite cheap hotels in Georgetown. The Sim City Stay Guest House offers affordable budget accommodation, an excellent option for couples and family travelers. The Sim City stay is located close to the Jetties and is a short walk from the Heritage quarter of Georgetown. Reserve the SimCity Stay on Agoda for the best prices.

It is worth being aware that this property is around a 20 minute walk from Komtar, which is famous for its street food, shops and restaurants. We are particularly impressed by the family room with a private bathroom. This includes a large double bed, a single bed, private bathroom and a sea view.

Impressively this costs under £20 per night, which is absolutely amazing for Georgetown.The dormitory rooms are simple, clean and comfortable. Bunk beds include a dedicated plug socket for charging and individual lights. They also have fans and air conditioning in the dormitories.

The Sim City Stay has an intense and garish interior design in some parts of the property. What it lacks in style it makes up for in price. Rooms range between £7 – £20 which is excellent for hotels in Georgetown Penang.
3 The 80’s Guest House

One of the most stylish cheap hotels in Georgetown. The 80s Guest House offers a lot of style and character for a cheap Budget Hotel in Georgetown. This Guest House has a retro boutique style and is very clean and well kept. The 80s guest house has a very good range of dormitory options. Reserve the 80’s Guest House early to avoid disappointment.

They also offer a private twin or private double room with shared bathroom. Dormitory prices start at around £10 per night and there are both mixed and female dormitory options. The 80s guest house also has an excellent cancellation policy allowing free cancellation until close to your book dates. However, always check this when you book.

Rooms at the 80s Guest House are clean, simple and comfortable. All rooms have air conditioning and there is free Wi-Fi throughout the property. This impressive property is excellently located on Love Lane near Jalan Chulia. This is close to a lot of the Georgetown Heritage attractions and Street food.
4 The Frame Guesthouse

The Frame Guest House is another great option if you are looking for cheap hotels in Georgetown Penang. The frame Guest House has a minimalist style with a grey and plaster interior design. They offer a range of dormitory options including female and mixed dorms.

Dormitories have bunk beds. We love the design of these beds with individual lights, a small shelf and a dedicated plug socket for charging. There are 4 or 6 bed dorms, mixed or female only options available. And the frame Guest House has twin and double room options with a shared bathroom. Snatch this one up early if you can.

They also have a private double room with an en suite bathroom. This room is around £30 per night so is on the higher end of the budget options. If you’re looking for a private en suite – and you are able to stretch up £30 per night then we recommend shopping around.

Many properties offer nice rooms for this type of price. The Frame Guest house is a great option for solo or couple travelers. For families we recommend shopping around.
5 Grand FC Hotel

The Grand FC Hotel in Georgetown may not be that grand but it is definitely very good value for money. We picked this one for our most recent stay when we were looking for cheap hotels in Georgetown (we always travel on a budget!) The Grand FC Hotel offers clean, simple and functional rooms for a competitive price. They have a range of rooms available including a double, triple and twin room. Rooms all feature air conditioning and a private ensuite bathroom. The main disadvantage of the Grand FC is the size of the rooms. Rooms are pretty small and simple.
Watch out for great deals at the Grand FC hotel on Agoda

The Grand FC also has a self service check in machine and a drinking water dispenser so that you can top up your water bottle.They have a card locking system on the doors to increase security. Located on Argyll road, this hotel is a short walk from Penang road (famous for great street food) and it is also not too far from Komtar (with its transport links and shopping malls).

Don’t miss the Transfer Road roti chennai just around the corner from the Grand FC hotel – a great chance to experience a truly local breakfast! The Grand FC Hotel seems to be a simple no fuss option for budget hotels in Penang. It’s not stylish but it does the job.
6 Loop on Leith Hotel

If you’re looking for cheap hotels in Georgetown this one is surprisingly nice. The Loop on Leith Hotel is a newly renovated property. Loop on Leith offers many of the facilities and amenities that you would expect in a more expensive hotel. For example there is a cafe bar and coffee shop on site. This property also offers free parking on site, and includes a 24-hour reception desk.
Keep an eye out for amazing deals at the Loop on Leith on Agoda

Loop on Leith offers a range of rooms including double rooms and twin rooms with a range of different amenities. Compared to most budget hotels in Penang, Loop on Leith is actually pretty trendy! We love the New York coffee shop style Interiors. The main disadvantage of the Loop on Leith Hotel is that the maximum capacity of rooms is 2 people. Therefore, this is not a good option for families. There is no capacity for cots or extra beds at this property.

Rooms are beautifully furnished with stylish black and white Interiors and large windows allowing plenty of natural light. The facilities and amenities in rooms are excellent for the price. Many of the rooms include a fridge minibar, air-conditioning, a private ensuite bathroom and a large flat screen TV. Loop on Leith is also excellently located near Chulia Street in the heart of Georgetown. It is a short walk from beautiful temples, Little India and Komtar. As far as budget hotels in Penang go, the Loop on Leith is excellent value for money.
7 Lang Hoose

The Lang Hoose is the most expensive of our cheap hotels in Georgetown. Ambiance and style set the Lang Hoose apart from some of the cheaper hotels we have recommended in this article. BUT it is still pretty cheap. The cheapest room at Lang House is the small single room.
Keep an eye on Agoda for amazing deals at the Lang Hoose

They also have double and triple rooms AND they have a family room in a converted attic with a double bed and two single beds – and sleeps up to 4 people. The low rafter roof adds to the charm and character of this room. This is on the more expensive side at around £60 per night. There are no shared dorms at this property.

The Lang Hoose is located on the edge of the Penang Heritage quarter of Georgetown and a couple of blocks from the fascinating Penang jetties. Nearby you can find street food, coffee shops and street art.
The Lang Hoose is surprisingly stylish compared to many BUDGET hotels in Penang. The Lang Hoose has a boutique RetroVintage style. We love the use of antique ornaments and memorabilia. The color scheme is a vibrant Peranakan palate. We love the traditional, artistic and authentic ambiance of this property. They also have a range of rooms to meet everyone’s needs. Rooms all come equipped with air conditioning and private ensuite bathrooms.
