A budget-friendly hotel is a cost-effective accommodation option that offers a comfortable stay with essential amenities while keeping expenses in check. When travellers visit Penang, they often consider booking budget-friendly hotels for several compelling reasons. The island is known for its diverse attractions, from its rich cultural heritage to pristine beaches. Travellers prefer to allocate their budget to exploring these treasures, sampling local cuisine, and engaging in various activities.
Their convenient locations in or near popular tourist areas make it easy for guests to access local attractions, markets, and dining options. These hotels typically offer flexible booking options, ensuring travellers can adapt their plans as needed. With reliable and courteous service, budget-friendly hotels in Penang cater to travellers who seek both cost-effectiveness and a comfortable, convenient stay while making the most of their travel budget. Here are the 10 best budget-friendly hotels in Penang you may need to consider.
How Suitable are Budget-Friendly Hotels for Backpacker Travellers?
Budget-friendly hotels are generally quite suitable for backpacker travellers for several reasons:
- Affordability
Budget-friendly hotels offer cost-effective accommodation options, making them ideal for backpackers often seeking to minimise travel expenses. These hotels provide a comfortable and private resting place without the high costs associated with upscale accommodations. - Basic Amenities
While budget hotels may not offer luxury amenities, they typically provide essential facilities like clean rooms, comfortable beds, and private bathrooms. These amenities meet the basic needs of backpackers accustomed to simple and functional accommodations. - Convenience
Budget-friendly hotels are often located in central areas or near popular tourist attractions, providing backpackers convenient access to the places they want to explore. This can save time and money on transportation. - Social Atmosphere
Many budget-friendly hotels are frequented by like-minded travellers, creating a social atmosphere where backpackers can exchange tips, share experiences, and make new friends. This can enhance the overall travel experience for those looking to connect with fellow adventurers.
What Is the Most Budget-Friendly Way to Explore Penang?
Exploring Penang on a budget can be an enjoyable and cost-effective experience. Here are five budget-friendly ways to explore this beautiful island:
- Walking and Cycling
Penang is known for its well-preserved heritage streets and scenic coastal areas. One of the most budget-friendly ways to explore is by walking or cycling. You can stroll through historic George Town, admire street art, and explore Penang’s diverse neighbourhoods at your own pace. Many areas also have designated cycling lanes and bike rental services for an eco-friendly, affordable adventure. - Street Food
Penang is a food paradise, and one of the best ways to savour its cuisine on a budget is by indulging in street food. Hawker stalls and local markets serve delicious and affordable dishes like char kway teow, laksa, and rojak. Exploring Penang’s culinary scene through street food is a tasty and cost-effective adventure. - Public Transport
Penang’s public bus system is an economical way to get around the island. Rapid Penang buses connect major tourist areas, making it convenient for budget-conscious travellers to reach popular destinations like Batu Ferringhi, Penang Hill, and Kek Lok Si Temple. You can also consider using the free CAT (Central Area Transit) bus to explore George Town. - Free Attractions
Penang offers several free or low-cost attractions that provide insights into its culture and history. Some examples include exploring Clan Jetties, visiting temples and mosques, and admiring the street art scattered throughout George Town. These experiences allow you to enjoy Penang’s culture and heritage without breaking the bank. - Nature Exploration
Penang boasts beautiful natural landscapes, and many outdoor activities are budget-friendly. You can visit Penang Botanic Gardens, hike in Penang National Park, or enjoy a day at Batu Ferringhi Beach without incurring significant expenses. Exploring the island’s lush greenery and coastline is an affordable way to appreciate its natural beauty.
Read more on places you can visit to top off your luxury budget-friendly stay here:
- Best Paintball Places in Penang
- Best Omakase Restaurants in Penang
- Best Yoga Classes in Penang
- Best Katsudon in Penang
- Best Cheese Platters in Penang
10 Best Hotels Below RM500 in Penang 2025
1. Lexis Suites Penang
Lexis Suites Penang, priced at RM417 per night, offers an affordable luxury experience. Located 5 km from Penang International Airport, this beachfront hotel boasts rooms with private plunge pools, steam rooms, and spacious layouts. Guests can enjoy Japanese cuisine, bars, and beach views. Amenities include a gym, outdoor pool, spa, karaoke room, and beach access. The hotel provides top-notch services and an abundance of breakfast options. While the main road in front can be slightly congested, it’s an excellent choice for a budget-friendly luxury stay.
What makes it unique:
✅ Japanese cuisine, bars, and beachfront views.
✅ Amenities include a gym, outdoor pool, spa, karaoke room, and beach access.
✅ Affordable luxury experience with private plunge pools, steam rooms, and spacious layouts.
Address: 28, Jalan Teluk Kumbar, Kampung Teluk Kumbar, 11950 Bayan Lepas, Pulau Pinang
Phone No: +604-628 2888
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/LexisSuitesPenang
Instagram: https://www.instagram.com/lexissuites/
Check Info On Website2. PARKROYAL Penang Resort
PARKROYAL Penang Resort, with rates around RM381 varying by booking dates, offers an affordable taste of luxury. The spacious rooms feature super comfortable beds and pillows. The hotel’s proximity to various activities such as paragliding, horse riding, and beach walks, along with walking distance to the night market and dining options, makes it a strategically located gem. With a fitness centre, sauna, spa, outdoor pool, hot tub, and excellent dining at Cinnamon Asian Kitchen, this hotel offers a well-rounded experience for budget-conscious travellers looking for a touch of luxury.
What makes it unique:
✅ Proximity to activities like paragliding, horse riding, and beach walks.
✅ Excellent dining at Cinnamon Asian Kitchen.
✅ Fitness centre, sauna, spa, outdoor pool, and hot tub.
Address: PARKROYAL Penang Resort, PARKROYAL Penang Resort Batu Ferringhi Beach, 11100 Batu Ferringhi, Pulau Pinang
Phone No: +604-886 2288
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/parkroyalpenangresort?fref=ts
Instagram: https://instagram.com/parkroyalpenangresort/
Refer Info On Website3. DoubleTree Resort by Hilton Penang
DoubleTree Resort by Hilton Penang offers a remarkable budget-friendly luxury experience with rates starting at RM215. The spacious and clean rooms with great views and a wide breakfast selection make it a great value. The hotel’s friendly and efficient staff and warm chocolate chip cookies upon check-in add a pleasant touch to your stay. With its tranquil ambience, child-friendly amenities, and eco-friendly certifications, this resort is perfect for a memorable and cost-effective Penang getaway.
What makes it unique:
✅ Spacious and clean rooms with great views.
✅ Wide breakfast selection.
✅ Tranquil ambience, child-friendly amenities, and eco-friendly certifications.
Address: 56, Jalan Low Yat, Puncak Ria, 11100 Batu Ferringhi, Pulau Pinang
Phone No: +604-892 8000
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/Doubletree
Instagram: https://instagram.com/doubletree
Website Info4. The Wembley A St Giles Hotel
The Wembley A St Giles Hotel offers an excellent stay starting at RM306, though the price may vary by booking date. The hotel’s central location in Georgetown makes it ideal for visitors who want to explore the area. The staff’s courteous and accommodating nature, including early check-in, is especially appreciated by families with kids. It boasts a spacious lobby to handle many guests simultaneously and provides orderly and systematic car parking. With an infinity swimming pool and gym facilities, the hotel ensures a comfortable and convenient stay. It is strategically located near shopping malls and numerous dining options, making it a fantastic choice for tourists.
What makes it unique:
✅ Central location in Georgetown.
✅ Courteous and accommodating staff.
✅ Infinity swimming pool and gym facilities.
Address: 183, Jalan Magazine, George Town, 10300 George Town, Pulau Pinang
Phone No: +604-259 8000
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/TheWembleyPenang
Instagram: https://www.instagram.com/thewembleypenang
View website5. Vouk Hotel Suites
Vouk Hotel Suites, priced at RM158 per night, offers a relaxed and budget-friendly stay along a picturesque tree-lined road, affording views of the Straits of Malacca. Located just a short walk from Chaiya Mangalaram Thai Buddhist Temple and in close proximity to the Gurney Plaza shopping mall and Penang ferry terminal, the hotel boasts streamlined rooms equipped with essential amenities like Wi-Fi, TVs, minibars, and tea/coffee-making facilities. Upgraded rooms feature luxurious additions such as whirlpool baths, massage chairs, and partial straits views, enhancing the guest experience. The hotel also provides a restaurant, a spacious bar, free parking, and breakfast service. Vouk Hotel Suites ensures a comfortable and cost-effective stay for travellers, making it an excellent choice for those seeking affordability without compromising on quality.
What makes it unique:
✅ Picturesque tree-lined road with views of the Straits of Malacca.
✅ Close proximity to attractions like Chaiya Mangalaram Thai Buddhist Temple, Gurney Plaza, and Penang ferry terminal.
✅ Restaurant, bar, free parking, and breakfast service.
Address: 57-G-3, Mansion One, Jalan Sultan Ahmad Shah, George Town, Malaysia
Phone No: +604-370 8333
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/voukhotelsuites
Instagram: https://www.instagram.com/voukhotelsuites/
View website6. Hompton by the Beach Penang
Hompton by the Beach in Penang offers a delightful stay for RM270 per night, with prices subject to date variations. The hotel’s commitment to service quality and comfortable accommodations is commendable, and it stands out for its fantastic service, friendly staff, excellent location with stunning sea views, and direct beach access. The spacious, modern rooms include amenities like an espresso coffee machine, daily replenished snacks and drinks, and luxurious bath products. With thorough housekeeping and supportive receptionists, Hompton ensures an excellent Penang experience.
What makes it unique:
✅ Delightful stay with stunning sea views.
✅ Modern rooms with amenities like an espresso coffee machine.
✅ Daily replenished snacks and drinks.
Address: 533, Jalan C M Hashim, Tanjung Tokong, 11200 Tanjung Bungah, Pulau Pinang
Phone No: +604-373 3233
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/HomptonHotelPenang/
Instagram: https://www.instagram.com/homptonhotel/
View website7. Angsana Teluk Bahang
Angsana Teluk Bahang in Penang offers a tranquil retreat away from the bustling tourist areas, with prices starting at RM411, subject to date variations. The hotel boasts well-designed, spacious rooms with breathtaking sea views from the balcony. While the food, especially room service, could be improved, the overall experience is excellent. The hotel offers a perfect place for relaxation and honeymoon, though it is somewhat distant from town, making it better suited for those seeking a serene escape. The sea view is captivating, and the room’s design and amenities are commendable.
What makes it unique:
✅ Tranquil retreat away from bustling tourist areas.
✅ Captivating sea view.
✅ Good for relaxation and honeymoon.
Address: Angsana Teluk Bahang, Penang, 11, Jalan Teluk Bahang, Teluk Bahang, 11050 Tanjung Bungah, Penang
Phone No: +604-817 0888
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/AngsanaHotels
Instagram: https://www.instagram.com/angsanahotels/
View website8. Maritime Luxury Suite
Maritime Luxury Suite is a prime budget-friendly option for travellers seeking an upscale yet affordable stay in a great location. This high-rise apartment hotel offers modern studios with complimentary Wi-Fi, flat-screen TVs, and well-equipped kitchens, with additional amenities in upgraded studios. Chic 1- to 2-bedroom apartments with separate living rooms are also available. Kids aged 11 and under stay at no extra cost with an adult. The hotel features an outdoor infinity pool, a gym, and complimentary parking, making it an excellent and budget-conscious choice for travellers.
What makes it unique:
✅ Upscale yet affordable stay.
✅ Modern studios with complimentary Wi-Fi, flat-screen TVs, and well-equipped kitchens.
✅ Kids aged 11 and under stay free with an adult.
Address: Maritime Luxury Suite, 29B-03, 05, Persiaran Karpal Singh 2, 11600 George Town, Pulau Pinang
Phone No: +6017-237 2191
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/maritimewaterfront/
9. The Prestige Hotel Penang
The Prestige Hotel Penang offers a budget luxury experience at RM465 per night. Located just 25 minutes away from Penang International Airport, the hotel is within walking distance of Penang’s cultural attractions and gourmet hotspots. This unique hotel, part of the prestigious Design Hotels™ portfolio, showcases a magical modern-day interpretation of Victorian design. It features visually captivating elements and enchanting tricks throughout the property, making it a destination. Guests can enjoy an infinity pool with quayside views, a custom-designed gym, and a rooftop pavilion for private events. The Glasshouse restaurant offers a delightful culinary experience. This hotel is perfect for travellers seeking a distinctive and stylish stay in the heart of Penang’s historic core.
What makes it unique:
✅ Convenient location within walking distance of cultural attractions and gourmet hotspots.
✅ Budget luxury experience with unique modern Victorian design.
✅ Infinity pool with quayside views, custom-designed gym, and rooftop pavilion for private events.
Address: 8, Gat Lebuh Gereja, George Town, 10300 George Town, Pulau Pinang
Phone No: +604-217 5888
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/ThePrestigeHotel/
Instagram: https://www.instagram.com/theprestigehotelpg/
View website10. The Edison George Town
The Edison George Town offers an exceptional budget luxury experience under RM500 in Penang. This elegant Colonial mansion, dating back to 1906, provides a charming and comfortable stay. The hotel’s staff consistently goes above and beyond to ensure guest satisfaction, making your 4-night stay enjoyable. The rooms are spacious and clean, and the property exudes historical charm. While the karaoke from the hawker market opposite may occasionally be audible due to the building’s age, the overall experience compensates for it. Enjoyments, wine tastings, and a relaxing outdoor pool enhance your stay. With its strategic location, just a short walk from Fort Cornwallis, The Edison is a perfect base for exploring Georgetown’s cultural attractions.
What makes it unique:
✅ Exceptional budget luxury experience in an elegant Colonial mansion.
✅ Historical charm.
✅ Strategic location for exploring Georgetown’s cultural attractions.
Address: The Edison George Town, 15, Lebuh Leith, George Town, 10200 George Town, Pulau Pinang
Phone No: +604-262 2990
Google Map: Navigate Now
Google Reviews: Here
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Disclosure: This list was compiled by the team at My Weekend Plan after extensive research and shared opinions to suggest helpful recommendations for the public. The sequence of brands is in no particular order so if you have any other great suggestions too, please email us support@myweekendplan.asia. For more information, kindly refer to our copyright, privacy & disclosure policy.
