6 Affordable Hotels in Penang (2026)

Exploring Penang on a budget doesn't mean you have to compromise on comfort or style. This vibrant Malaysian island offers a variety of affordable hotels that combine historical charm with modern amenities. From heritage shop-houses to boutique hotels, the options are diverse and cater to different tastes. Whether you're looking for a family-friendly stay, a romantic escape, or a spot to unwind with friends, there's a budget-friendly hotel in Penang that fits the bill.

For a boutique

• Muntri Grove Hotel is a laid-back boutique hotel that promises a tranquil oasis in the heart of George Town, without the hefty price-tag. A restored row of townhouses, this property has 16 vintage-inspired rooms and suites with recycled wood pieces, tropical prints and views over lush gardens. The rooftop pool is a real lure. 

• Hotel Penaga is a stunning hotel that pairs designer flair with boutique tradition. Gorgeous rooms and suites have four-poster beds, sleek lines, geometric spaces, but at the same time lots of authentic decoration. There is an excellent fusion restaurant. A great way to visit the city in style without breaking the bank. 

For families

• Noordin Mews is a chic 16-room hotel set in a former Peranakan shop-house. Whitewashed rooms feature mid-century artwork and curios, wet room-style bathrooms and space for extra beds. There's a buzzy daytime eatery, and a courtyard swimming pool that kids will love. An affordable base.
• Jawi Peranakan Mansion is a well-priced, charming heritage hotel. Expect striking architecture, wooden furnishings, and Indian textiles. The six family suites and courtyard pool are ideal for trips with little ones or with teenagers.

For groups

• Muntri Mews is an excellent value chic boutique in Old Georgetown. Charming rooms have traditional elements with four-poster beds, soft fabrics and teak balconies overlooking the garden. There is a lovely little cafe and it's close to Penang's attractions. With suites that sleep six or four, this is well-suited to groups or families.
• Yeng Keng Hotel is a charming 200-year-old residence on popular Chulia St. This quirky little hotel is an affordable George Town base with different room configurations, making it a good option for groups of friends or families. Rooms and suites have vintage pieces and bright yellow or green walls. Enjoy buffet breakfasts, a pool and events in the courtyard. 

Still not sure?

• Expand your search to include our selection of affordable hotels in Malaysia,
• Cast the net even further and check out all our recommendations in Penang,
• Alternatively, contact one of our friendly Gurus for personalised advice.