Top 23 Budget Hotels in Penang for less than 30$/Night

This insider guide to the best budget hotels in George Town and Penang will help you choose where to stay without breaking the bank, and without sacrificing cleanliness and comfort.

budget hotel in penang george town
(image from Booking.com)

Coming to Penang to see one of its incredible festivals, gorge on Penang food, or explore one of its 20+ beaches or National Park? Maybe need a breather from the big city and decided to come from Kuala Lumpur to Penang?

Great. After you read what to do in Penang as a first-timer, you should decide where to stay, right? This post will give you 23 ideas to choose a perfect budget hotel in Penang that will make you very happy.

Yes, we know what you are wondering: is cheap any good in Penang? Good news: yes, it is.

The following are some of the cheapest hotels in Penang, and still, provide excellent value for less than 30$ (about MYR 120) per night.

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We have already selected some of the best Penang Boutique Hotels you can stay at starting from 35$ a night. This post, on the other hand, will give you suggestions to find a perfect budget hotel in Penang and spend less less than 30$.

The Cheapest Hotels in Penang

Penang is a very budget-friendly destination. If you are a backpacker on a budget, please don’t miss our review of the best backpacker hostels in Penang.

This new post on Penang budget hotels will mention some of those we think are best. Please consider that our choice is catered to the general public and those who are looking for better facilities than just a dormitory shared by international travelers.

Budget Hotels in George Town Penang

1Magpie Residence

(image from Booking.com)

Quietly tucked in a backroad off Jalan Transfer and in 10 minutes walk from Chulia Street, Magpie Residence is a perfect budget hotel choice in George Town.
It has smart en-suite private rooms that are larger than most in this price category, it’s very clean, quiet and yet social. Not a backpacker hostel, but a proper budget hotel to suit all tastes and keep you very happy on a budget.

Check the best prices: Booking.com


2WOW Hotel

(image from Booking.com)

The name of this hotel says it all, as it’s such incredible value for the prime location in walking distance to all that KOMTAR has to offer, and also a couple of minutes away from Penang Road and George Town’s pulsating heart. Rooms are large and make good use of industrial chic styles to give guests the full-on luxury experience, yet at a fraction of the price. There’s a kid playground, too — don’t forget to check out all you can do in Penang with Kids.

Check the best prices: Booking.com


3Attic Hotel

(image from Booking.com)

This is another incredible offer judging the quality of the rooms, the cleanliness and the price that could match much more expensive stays in Penang. Attic Hotel is smack-central in Chinatown, only a few minutes walk from KOMTAR, and also in walking distance to all the central night food markets where you can try the best Penang food. Staff is friendly and will suggest the best things to see and do in Penang for first-timers.

Check the best prices: Booking.com


4McLane Boutique Hotel

(image from Booking.com)

Yes, this is an incredible option for budget stays in George Town: it ticks all the boxes of the boutique hotel category, but at less than 20$ a night, it’s the perfect budget option for those who can’t sacrifice comfort and yet don’t like to open the wallet. The location is perfect, just behind the Goddess of Mercy Temple and a minute walk away from all that Chulia Street has to offer. What are you waiting for?

Check the best prices: Booking.com


5Kimberley Hotel

(image from Booking.com)

Born as a full-fledged luxury hotel that hoped to cater to less high budgets, Kimberely Hotel has possibly been the first central George Town property to show that budget doesn’t necessarily mean lacking style and comfort. The many rooms here are all comfortable, large, and furnished with plush beds, en-suite bathrooms with rain showers, and much more than you would expect for a mere 20$ a night.
The buffet breakfast spread alone is worth all the money you’ll pay.

Check the best prices: Booking.com


6Chulia Mansion

(image from Booking.com)

This is another great budget hotel option in George Town, set in the middle of Chulia Street, and boasting superior facilities for very low prices. The hotel artsy decor, with paintings from local and international artists, is quite unique even in this street art town. The rooftop terrace with a jacuzzi and the free ice cream flow for guests are nice additions that better complement Chulia Mansion’s sumptuous buffet breakfast.

Check the best prices: Booking.com


7Carnarvon House

(image from Booking.com)

The beautiful rooms here are simply decorated and beautifully furnished with wooden panels and beams. An atmosphere that well complements with the heritage appeal of this former Strait Chinese shophouse set at the fringes of George Town, where you can find some of Penang best nightlife.

Check the best prices: Booking.com


8Lavish Capsule Spa & Cafe

(image from Booking.com)

Welcome to the future at this industrial-chic capsule hotel set smack in the center of Chulia Street’s action. Yes, it’s a flashpacker hotel, but it’s great budget value with very clean individual pods, a cafe and a spa on site. Definitely worth checking out for a surreal, futuristic stay.

Check the best prices: Booking.com


9Moontree47

(image from Booking.com)

Even after several years, Moontree47, one of the pioneers among George Town’s heritage-inspired hotels, still offers some of the best-priced rooms. There are great quality and attention to details here, and the owner is friendly and knowledgeable. You’ll experience living inside a beautiful Penang central shophouse decorated with gusto and in walking distance to anything that matters in George Town.

Check the best prices: Booking.com


10Old Penang Guesthouse

(image from Booking.com)

This stalwart Penang budget hotel has been serving travelers along Love Lane for quite a while. It has well-appointed double rooms and a friendly atmosphere that mixes well with the heritage feel. The fact it’s been a solid mainstay on a strip where things change way too soon it’s a guarantee that you’ll get great bang for your buck here.

Check the best prices: Booking.com


11Hutton Lodge

(image from Booking.com)

Another old-timer, Hutton Lodge is a hit with older backpackers on a budget and generally known to be a perfect low-budget option. But the double rooms here, large and almost all with windows, better value than most other similar properties in Penang. Definitely worth a look, and very good priced to boot.

Check the best prices: Booking.com


12Hotel Mingood

(image from Booking.com)

A solid budget hotel choice in George Town, Mingood is a central Penang budget hotel tucked onto Jalan Argyll off Jalan Transfer, and it’s a more traditional-run hotel than most other options on this list. Rooms are large and decent for the price, albeit they could certainly benefit from a little spruce up. But there’s a convenient free covered parking and that “hotel atmosphere” that many crave, so it should certainly be considered by Malaysian families and those who are driving onto the island.

Check the best prices: Booking.com


13Red Inn Cabana

(image from Booking.com)

A popular haunt for both budget travelers and those in search of more privacy, this charming heritage house off Leith Street is central and cozy. It’s in walking distance to Muntri Street and the backpacker enclave on Chulia Street and yet offer some quiet and privacy on its secluded, yet very social, grounds. Check it out.

Check the best prices: Booking.com


14Tune Hotel George Town Penang

(image from Booking.com)

Airasia’s Penang property may not be a dreamy escape, but it’s cheap, squeaky-clean and very good for a night or two on the island. Yes, we get it: it’s a bit aseptic and impersonal, but where you’ll get this quality of rooms for less than 20$ in Penang?

Check the best prices: Booking.com


15Chulia Heritage Hotel

(image from Booking.com)

This is another incredibly good value property set along super-central Chulia Street. It has a nice front courtyard and white-washed interiors with speckles of gold that, in the past, granted prices to be kept much higher. It still remains a very good option, clean and central, and something you should consider for staying close to Penang nightlife.

Check the best prices: Booking.com


16Broadway Budget Hotel

(image from Booking.com)

The ugly duckling of George Town’s hotel gentrification may be an old hand and have more scars that we all can remember. But it dominates one of George Town’s most iconic corners, smack centre on Jalan Masjid Kapitan Keling, and is a throwback to all that Malaysia and Penang were before street art and UNESCO started spinning the hipster wheel. Only for true hardcore old Asia hands.

Check the best prices: Booking.com


Best Budget Hotels Near Penang Airport

17D’Nice Hotel

(image from Booking.com)

Maybe a bit charmless, but this is the closest hotel to Penang Airport. It’s clean, not expensive, and perfect for those early morning flights, but don’t stay here for the sake of saving some money because there’s much better value in George Town.

Check the best prices: Booking.com


18The LOV Penang

(image from Booking.com)

This is just a few bucks more expensive than 30$, but definitely the best option, with plenty of local charm and yet a splurge of hip comfort, for a budget hotel near Penang Airport. The rooms are large and comfortable and host up to 3 people. You can even book a full dorm room for six for RM290 which is a pretty good deal.

Check the best prices: Booking.com


19DR Hotel Penang

(image from Booking.com)

It may not look like anything special from the outside, but the rooms here are quite decent for the price. It’s literally in walking distance to Penang Airport, and perfect for catching an early morning flight.

Check the best prices: Booking.com


Budget Hotels in Batu Ferringhi

Batu Ferringhi is usually famous for its upmarket 5-star beachfront hotels, but you can also find a couple of good budget options if you look hard enough.

20Ferringhi Heritage Budget Hotel

(image from Booking.com)

A perfect budget option in an area that usually has much more expensive hotels. Let’s say that “heritage” here is a bit of an exaggeration, however, the rooms are decent enough for those who don’t want to break the bank.

Check the best prices: Booking.com


21Zahaar Hotel

(image from Booking.com)

Another decent option to stay in Batu Ferringhi and save money, Zahaar hotel has adequate rooms for the price category and friendly staff who will make all they can to help.

Check the best prices: Booking.com


Best Budget Hotels in Tanjung Bungah and Tanjung Tokong, Penang

228 Boutique By the Sea

(image from Booking.com)

Slightly pricier than 30$, this hotel sits within the Chinese village close to Penang Avatar Secret Garden and a quiet beach. It’s a good option to check the pulse of Penang from a relatively prime and pristine location with amazing sunsets and leave the smog of George Town for later.

Check the best prices: Booking.com


23Hotel Sentral [email protected] Beachfront

(image from Booking.com)

This hotel has a good seafront location and very decent, large rooms that will appeal to those who want a more traditional hotel stay. The sea-facing swimming pool next to the restaurant is a great touch and a selling point, as much as the good breakfast spread.

Check the best prices: Booking.com


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Marco Ferrarese has lived in Penang since 2009 and is an expert on Malaysia and Borneo. He authored chapters on Malaysia and Brunei for the Rough Guides and published several books. He has written on travel, culture and extreme music in Asia for a variety of international publications and shares his Penang intelligence on the Penang Insider.
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