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Trying to find where to stay in Penang in 2026? Read this guide carefully to make sure you find the BEST area for you to enjoy your trip.
In this article we will review and recommend the best areas to stay in Penang. Penang island (also known as Pulau Penang) is a beautiful island packed with culture, heritage, natural beauty and amazing food. There are so many epic things to do in Penang. But Penang Island is actually very large and there are many areas to choose from. Each area has its own unique advantages and disadvantages. There are also a few areas which we do not recommend staying in. So how do you find where to stay in Penang?
We have lived in Penang and traveled all around the island. We’re very excited to share the best places to stay in Penang to help you plan your trip. Oh yeah, we will also mention a few areas that we do not recommend staying in Penang.
Still not sure whether to visit Penang? Don’t miss our comparison guide – Penang vs Langkawi
Where to stay in Penang – things to KNOW before you make your plans
If you are looking for character and charm Georgetown is the best location for heritage hotels. Alternatively, if you are looking for large luxurious resorts and 5 star hotels in Penang then Batu Ferringhi is amazing.
Most of the BEST THINGS TO DO in Penang are concentrated in the North West tip of the island – around Teluk Bahang. This is around 20 km from Georgetown and takes around 1 hour by road.
Getting around Penang is easy but time consuming. There is a good bus system in Penang. You can also get taxis for a reasonable price using the Grab taxi app (most journeys range between RM5 – RM50 in Penang).
Also, don’t be mislead. Technically Penang can include some of the mainland area (Butterworth) – but we really don’t recommend staying in Butterworth. Make sure your hotel is actually on Penang island (Pulau Penang) and if possible try to stay in one of the areas we recommend.
Where to stay in Penang – Map
Where to stay in Penang – Summary
| Area | What is the area like to stay? | Best hotels in the area |
| Batu Ferringhi | The main hotel & resort hub in Penang. Nice beach and night market. Lots to do in the area. Good transport and lots of food. | Hard Rock Hotel Penang, Rasa Sayang and the Rasa Motel |
| Little India | Good vibes. Lots of great food, temples and heritage. Very central and lots of transport. | Seven Terraces, Ren I Tang Heritage Inn and 23 Love Lane Hotel |
| The Jetties | Quiet tranquil and beautiful area of Georgetown. Some nice hotels in the area. | The Prestige Hotel Penang, The Savv Hotel and the Sim City Stay |
| Penang Road | Lots of culture, street food and good vibes. Also near Komtar – great for shopping. Very central and lots of transport options. | Blue Mansion, Areca Hotel Penang and We Love Guest House |
| Gurney | Cosmo area with shops and large malls. Good transport – convenient location. Less local food around. | G Hotel Gurney, Ascott Gurney Penang, and the Gurney Lodge |
| Teluk Bahang | Beautiful town. Lots of attractions in the area. Under -developed. Long way from Georgetown. | Angsana Teluk Bahang and M’s Place |
| Tanjung Bungah | Nice central location. Not a travel hub but a good way to experience local life and markets. Some nice beachfront resorts, condos and villas. | The Lost Paradise Resort and the Mercure Penang |
1 Batu Ferringhi
DON’T MISS THE FULL GUIDE – The Best Things to See & Do in Batu Ferringhi
Batu Ferringhi is a small town located on the North Coast of Penang Island. Batu Ferringhi is the main resort destination in Penang. There is plenty to do in the area and public transport is very good.
Advantages of Batu Ferringhi
Batu Ferringhi has an impressive selection of food options available. There is a wide variety of local Malaysian street food (Chinese Indian and Malay). Batu Ferringhi also has many International restaurants too. Another advantage of staying in Batu Ferringhi is the wide selection of hotels, resorts and guest houses – they are more expensive but there’s a lot of choice here. There are plenty of shops, ATM’s and amenities in Batu Ferringhi.
Batu Ferringhi has a lovely clean beautiful beach – a nice place to see the sunset. You can often find water sports such as jet skiing in the area. There is also a very nice night market in Batu Ferringhi selling clothing, artwork and gifts. Finally, Batu Ferringhi is on the 101 bus route. There are regular buses to Teluk Bahang (national park, ESCAPE, Entopia and more). There are also regular buses to Georgetown.
Disadvantages of Batu Ferringhi
Firstly, Batu Ferringhi is a touristy area. Food, shopping and accommodation are more expensive in the area. Secondly, the quality can be lower in Batu Ferringhi. For example, some of the local food is geared towards tourists and not as good as other areas of Penang.
What are the best places to stay in Batu Ferringhi?
The best family friendly hotel in Batu Ferringhi is the Hard Rock Hotel (pictured above). It has an awesome outdoor swimming pool, a Hard Rock cafe, an on site spa, poolside bar and a nice section of beach. They also offer great family suites too. You can book the Hard Rock on Agoda. You can also reserve the Hard rock hotel on booking.com. If you’re looking for a luxurious stay consider the Rasa Sayang Resort – large, spacious and beautiful. Find the Rasa Sayang on Agoda. Also check the latest prices at the Rasa Sayang on booking.com. The best budget hotel in Batu Ferringhi is the Rasa Motel. They offer a range of rooms for competitive prices. Book the Rasa Motel on Agoda. You can also book the Rasa Motel on booking.com.
2 Little india – Georgetown
Little India is a vibrant and bustling neighborhood in Georgetown. The heart of little India is the section of streets between Jalan Chulia and Fort Cornwallis. These streets have lots of small Indian shops, restaurants and markets.
Advantages of Little India
Little India is packed with culture and heritage. There is lots of great Indian food in the area with restaurants open late into the evening. Little India also has several colorful Hindu temples. Don’t miss the amazing Kapitans Tandoori restaurant located on Jalan Chulia. Little India is close to lots of public transport connections. There is plenty to see and do in the area. It is very easy to access other areas of Georgetown by a short walk.
Disadvantages of Little India
Little India can be loud, busy and intense at times (at other times it is very quiet). Little India can also be challenging for parking. The streets are quite small and often busy. One of the disadvantages of Georgetown is the distance to get to Teluk Bahang (north west tip of Penang). There are lots of awesome things to do in Teluk Bahang.
What are the best places to stay in Little India
Ok, we need to own some irony here. The best accommodations in Little India are traditional Chinese hotels. Indian hotels just don’t seem to be a thing here. But all these hotels are located in or very close to little India. Check out Seven Terraces (pictured above) – this is a regal and traditional Chinese courtyard hotel. Book the Seven Terraces on Agoda. You can also book Seven Terraces on Booking.com. Luxurious and high price. Ren I Tang Heritage Inn – Vintage mid range Chinese retro hotel. Comfortable and minimalist. You can find the Ren I Tang on Agoda. You can also find Ren I Tang on booking.com. One of the best boutique hotels in Penang is also located right next to little India – check out 23 Love Lane Hotel. The name alone makes you want to stay here. Book 23 Love Lane on Agoda. Also check out 23 Love Lane on Booking.com.
3 Jetties – Georgetown
The Jetties are a beautiful and quiet fishing community right next to Little India in Georgetown. In this area you can see small wooden stilt houses, wooden walkways and jetties. The Jetties are one of the more quiet and tranquil areas of Georgetown.
Advantages of the Jetties
This is a lovely peaceful area to stay in Georgetown. The jetties are great for photography or a morning stroll. You can enjoy lots of temples and street art near the Jetties. You can enjoy lovely sea views and fresh air in the area. It is easy and convenient to access other areas of Georgetown from here. The jetties are next to Little India. This is also a very good location for public transport and taxis.
Disadvantages of the Jetties
There is not a lot of food and shops in the immediate area. To get to a busier area for shops and street food head to Little India or the Komtar area.
What are the best places to stay near the Jetties?
For a super trendy vintage style luxury 5 star hotel check out The Prestige Hotel Penang (pictured above). Prices are fantastic for what you get here. They even have a rooftop hotel here – this is very unique for Georgetown. Watch out for great deals at the Prestige on Agoda. Also check out the Prestige on booking.com. For an awesome mid-range option don’t miss the Savv Hotel. This lovely property is stylish, well designed and even has an outdoor pool. You can find the Savv hotel on Agoda. Watch out for deals at the Savv on booking.com. And finally if you are on a budget you can still get a sea view at the Sim City Stay – this is one of the best budget hotels in Georgetown. You can book the Sim City Stay on Agoda. You can also book Sim City Stay on Booking.com.
4 Penang road area – Georgetown
Penang Road is a central area of Georgetown. The area of Penang road near Komtar tower is a great area to stay in Penang. There are lots of temples, street food, cafes and more.
Advantages of Penang Road
The Penang Road area is one of our favorite areas of Georgetown. This is a bustling area with street Markets, small cafes, coffee shops and plenty of street food. The Penang Road area is located near Komtar which also has a large shopping mall, bus station and plenty of restaurants. There are lots of Chinese temples in the area.
Don’t miss the awesome Newlane outdoor street food market (closed on Wednesdays). Penang road has a reputation for Char Koay Teow, Laksa and Chendul. Penang road is also very central and enjoys good transport connections to the rest of Penang.
Disadvantages of Penang Road
Penang Road can be a little bit noisy and busy at times. Some of the more popular places to eat can be touristy and a bit more expensive than really local places.
What are the best places to stay near Penang Road?
Blue Mansion (pictured above) is located on the lower Penang road area – and this is one of the most prestigious and iconic heritage hotels in Penang. It is worth a visit even if you aren’t staying here! You can find the Blue Mansion on Agoda. Also check out the Blue Mansion on Booking.com. Areca Hotel Penang is a bright vibrant heritage hotel with great facilities for families. Check out Areca Hotel on Agoda for the latest prices. Also watch out for deals at the Areca Hotel on Booking.com. And also don’t miss the awesome We Love Guest House – one of the best budget hotels in Penang – this place packs a lot of character for the price. You can find We Love Guest House on booking.com.
5 Gurney area – Georgetown
Gurney is a great area to stay in Penang. This is the most cosmopolitan areas of Penang with malls, coffee shops and restaurants. Gurney is a suburb to the west of Georgetown.
Advantages of Gurney
This is a very good area to stay in Penang if you are planning to do some shopping while you are in Penang. It is also a good choice if you hope to stay in an area with lots of great restaurants, coffee shops and shopping malls. Gurney is very well connected by Public transport. Watch out for Gurney Drive Hawkers for an amazing local food experience. The Gurney Paragon Mall and the Gurney Plaza but have lots of restaurants offering a range of international and local speciality food. There is even a bouldering centre in Gurney Plaza.
Disadvantages of Gurney
Gurney is more expensive for food and accommodation. There is not as much amazing cheap local food in the area – although you can find places (Gurney drive is one of the best places for local food in the area)
What are the best places to stay near Gurney?
Ok, just a heads up. Gurney doesn’t have the same vintage boutique style as Georgetown – but there are still some great hotels in this area. Check out the stylish G Hotel Gurney – located right next to Gurney Plaza shopping mall. This is the perfect choice if you love luxury and shopping. Get a sweet deal at the G Hotel on Agoda. Also watch out for deals at the G Hotel on booking.com. Not far away you can find the Ascott Gurney Penang with spacious sea view suites (the Ascott is pictured above). Check out the Ascott Gurney on Agoda. Also check prices at the Ascott Gurney on booking.com. If you’re looking for something cheaper in the area check out the Gurney Lodge – conveniently located next to Gurney Drive hawkers and Gurney Plaza. Book the Gurney lodge on Agoda to lock in the best deals. You can also book the Gurney Lodge on booking.com.
6 Teluk Bahang
Teluk Bahang is a small village located in the northwest corner of Penang. This village is pretty quiet and not very developed. Teluk Bahang is the best area of Penang for activities.
Advantages of Teluk Bahang
Tekuk Bahang is a beautiful and tranquil area of Penang. There are some lovely quiet beaches in the area. This is the best area of Penang for activities. In the area you can visit the National Park – with its beautiful beaches. You can also visit Entopia (butterfly farm) and the impressive ESCAPE adventure park and water park. Teluk Bahang is also close to the Tropical Spice Garden and the Tropical Fruit Farm. There is a bus service that connects Teluk Bahang with Georgetown.
Disadvantages of Teluk Bahang
Teluk Bahang is not very developed. There is plenty of great local food around. But this is not a great place for cafes, restaurants or coffee shops. Things are pretty basic here. You can find a handful of small local shops around this area. There is also not a lot of accommodation to choose from in Teluk Bahang. Teluk Bahang is a long way from Georgetown.
What are the best places to stay in Teluk Bahang?
Ok, you wont be overwhelmed by choice here. The best options are the Angsana Teluk Bahang (pictured above). This is an awesome and innovative 5 star hotel with amazing sea view suites, a private pool suite and vibrant Peranakan interiors. Get an awesome deal at the Angsana on Agoda. Also watch out for deals at the Angsana on booking.com. Looking for something cheaper – check out M’s place located right next to the Penang National Park. You can book M’s Place on Agoda. And check out M’s Place on booking.com.
7 Tanjung Bungah
Tanjung Bungah is an area located on the north coast of Penang island between Georgetown and Batu Ferringhi. Not many short term travelers stay here – but this area is popular with Chinese and expat communities.
Advantages of Tanjung Bungah
In this area you can experience local life in Penang. Drop into the morning wet market selling fresh fruit, veggies, meat and fish. There is plenty of amazing local food at the market in the morning. Check out JJ Garden’s hawkers for a really local Chinese food haven. There are some nice sections of beach in the area too. Tanjung Bungah is located between Georgetown and Batu Ferringhi. This makes it quite central and convenient. It is also on a bus route. Tanjung Bungah is also not too far from Gurney – a great location for malls and shopping.
Disadvantages of Tanjung Bungah
Tanjung Bungah is our wild card – this won’t be for everyone. This is not a travel hub in Penang. Tanjung Bungah is located on the coast between Georgetown and Batu Ferringhi. There is not a lot to do in Tanjung Bungah itself – but you can experience local life in Penang.
Places to stay in Tanjung Bungah
Check out the unique innovative and creative Lost Paradise Resort (pictured above). Beautiful Moroccan and Balinisian style accommodation with several beautiful outdoor swimming pools. Find out the latest prices and deals at the Lost Paradise on Agoda. Also check out the Lost Paradise on booking.com.
Also check out the Mercure Penang beach hotel – there is a nice section of beach here. Watch out for sweet deals at the Mercure on Agoda. Check the latest prices at the Mercure on Booking.com.
A few areas not to stay in Penang
Before we name a few areas not to stay in Penang – if you find an amazing hotel in one of these places don’t sweat it. A good hotel may outweigh the disadvantages of these areas. As a rough rule, we don’t recommend staying in any of the areas along the east coast of Penang (south of Georgetown and all the way down to the airport).
Bayan Baru area
There are actually quite a few hotels in The Bayan Baru area. But there really isn’t much to commend this area. Bayan Baru has a large swimming pool and some nice shops. BUT there just isn’t much more to do around here. The area lacks charm and character and it is quite disconnected from Georgetown, Batu Ferringhi and the awesome attractions near Teluk Bahang. So unless you spot some awesome accommodation around here – we just don’t recommend staying in this area.
Air Itam area
Air Itam is actually quite a nice area. Super local and very pretty. In Air Itam you can visit the Kek Lok Si temple, the Air Itam Dam (great for trekking) and you can also take the Penang Hill Railway up Penang hill. But we just wouldn’t recommend staying here. There isn’t a great range of accommodation and Air Itam is not as developed as Georgetown. We recommend staying in Georgetown for quality accommodation and traveling over to Air Itam to make the most of the attractions.
Bayan Lepas area
Bayan Lepas is an area located in the south east of Penang near the airport. There is not a lot to do around Bayan Lepas. The area is not very developed and lacks character and charm. Bayan Lepas is a long way from Georgetown, Batu Ferringhi and many of Penang’s best attractions (pretty much on the opposite side of the island). Although we do not recommend Bayan Lepas as an area – there are some nice quiet beaches in the south of Penang. Also, there is a nice hotel with private pool suites – check out Lexis Suites Penang. It’s impressive how much you get for your money here.
Balik Pulau
Balik Pulau means “back of the island”. This is a small town located on the west side of Penang. We do recommend a visit to Balik Pulau if you get the chance. But this is not a great area to stay. It is not well developed as a town. It is also a long way from Georgetown and other areas of interest. And there is not a lot of accommodation to choose from in Balik Pulau. So although this area is fascinating and beautiful – it is not a great place to stay in Penang.
Looking for an epic Penang hotel?
Agoda often have amazing deals on hotels in Penang and they also have a fantastic selection of properties in Penang.
