Budget Hotels In Penang

Looking for budget hotels in Penang to relax and unwind?

Going on an island getaway (especially one that is on many tourists’ radar) need not cost you an arm and a leg!

Check out this list of best budget hotels in Penang that promises incredible stays without busting your bank account.

The 9 Top Budget Hotels in Penang 2023

1. Dou Houz Georgetown


Strategically located close to Penang’s famous street art and renowned eateries, Dou Houz is an impressive budget hotel in Penang.

Dou Houz Georgetown
Dou Houz Georgetown – image credits to booking.com

Juxtaposing its semi-industrial look is the Japanese-inspired decor, creating a vibe that’s strangely well put together.

And for as low as RM61 per night, you’ll get spotless toilets, accommodating owners, comfortable beds, plus proximity to the island’s hottest attractions.

Coupled with its cool communal area with books to read, Dou Houz offers an uplifting accommodation that’s hard to beat.

Dou Houz Georgetown Rooms
Dou Houz Georgetown Rooms – image credits to booking.com

What you’ll like:

  • Free Wi-Fi
  • Comes with air conditioning, and shared ironing facilities
  • The double and quadruple room comes with an attached bathroom
  • Towels, blankets, and pillows are provided
  • Snack bar
  • Games room
  • Self-check-in and out

Good to know:

  • A 18-minute walk from Armenian street
  • All dorm-type accommodations are mix-sex. Female only dorms are not available
  • Close to 1st Avenue Penang, Komtar and Prangin Mall
  • Soundproofing is minimal
  • Starting Price Per Night: RM110 (2 Pax)
  • Address: 169, Lebuh Noordin, George Town, 10300 George Town, Pulau Pinang
  • Contact: +6017-960 8820

2. U Hotel Penang


U Hotel Penang has eateries within walking distance, even something for vegetarians. But getting to George Town from here will take approximately 20 minutes.

U Hotel In Penang
U Hotel In Penang – Photo belongs to the hotel

However, U Hotel Penang is convenient for business folks since they do have a conference room. And the hotel is less than 20 minutes’ drive from Penang International Airport.

Additionally, those here to attend an event at either USM or the SPICE convention center will not have to commute far.

Rooms at U Hotel Penang are basic, but comfortable. Although they are smallish (this applies to the deluxe rooms too).

What you’ll like:

  • Guarded carpark for guests
  • Close to many dining options
  • Helpful staff
  • Security on site
  • Clean rooms
  • Close to a Tesco supermarket

Good to know:

  • Wheelchair-friendly
  • Soundproofing could be better
  • No option to include breakfast
  • No airport shuttle service
  • WiFi service is not very reliable
  • Starting Price Per Night: RM181 (2 Pax)
  • Address: 676, Jalan Sungai Dua, Taman Pekaka, 11700 Gelugor, Pulau Pinang
  • Contact: +604-6581000

3. Veno Hotel


If you want to be close to KOMTAR, Veno Hotel is a 9-minutes’ walk away. Similarly, Kimberly Street Food Night Market is also within easy reach.

Veno Hotel In George Town, Penang
Veno Hotel In George Town, Penang – Photo belongs to the hotel

This area has some cafes to explore as well. Urban Artisan Café is just 4 minutes’ walk away from Veno Hotel.

Hence, this is a very good location for sightseeing George Town on foot and on a budget. As it costs less than RM200 for a couple to stay here.

The hotel may not have a pool, on-site café or gym but the rooms are not lacking in amenities. There is even a mini fridge, safe, and a rain shower! Guests can refill their water bottles at the lobby from a water dispenser.

If there are any complaints about Veno Hotel, it is the lack of entertainment for guests. And slow WiFi.

Rooms At Veno Hotel In George Town, Penang
Rooms At Veno Hotel In George Town, Penang

What you’ll like:

  • Pleasant staff
  • Clean and new hotel
  • Considerate room layout
  • Comfortable beds and spacious rooms
  • Appealing room aesthetics
  • Great location for sightseeing

Good to know:

  • RM100 deposit required at check-in
  • WiFi is not strong
  • TV has very limited channels
  • There are 6 free car parks in front of the hotel
  • Starting Price Per Night: RM170 (2 Pax)
  • Address: 9, Jalan Zainal Abidin, 10400 George Town, Pulau Pinang
  • Contact: +604-2281005

4. Gurney Lodge


Want to save the money for some shopping on Gurney Drive? Gurney Lodge has many different room configurations to choose from. Including family rooms and the superior suite that has 2 double beds in it.

Gurney Lodge In Penang
Gurney Lodge In Penang – Photo belongs to the hotel

This new hotel has a terrific location close to both the mall (Gurney Paragon) and hawker center (Gurney Drive Night Market). Gurney Lodge’s location and staff are its main advantages.

Staff at Gurney Lodge is welcoming and friendly. Check in and check out is speedy too. The 24-hour reception desk comes in handy if you are checking in late.

You can opt for a room with a private balcony if you wish. All rooms have sufficient walking room, a fridge, water kettle, safe and tea and coffee sachets.

Rooms At Gurney Lodge In Penang
Rooms At Gurney Lodge In Penang – Photo belongs to the hotel

What you’ll like:

  • Dependable WiFi
  • Walking distance to malls
  • Close to dinner options
  • Spacious rooms
  • Considerate staff
  • Quiet, clean and comfortable rooms with amenities like toiletries and hair dryers

Good to know:

  • Beds are firm
  • Limited car parks
  • Starting Price Per Night: RM178 (2 Pax)
  • Address: 2 solok gurney 1, Persiaran Gurney, George Town, 10250 George Town, Pulau Pinang
  • Contact: +604-2105229

5. Moon Tree 47


This refurbished traditional Malaysian shophouse maintains a rustic vibe with intricate hints of olden day Penang.

Moon Tree 47
Moon Tree 47 – image credits to booking.com

A sense of calm greets you with corridors lined with green plants plus chirping birds in the foreground.

The hotel also opens up to an amazing courtyard decorated with hanging plants and a full shelf of books to devour.

Further bolstered by a decent spread of international menu at their on-site cafe, close proximity to street food, and top-notch hospitality, Moon Tree 47 is a gem of a place to stay.

Moon Tree 47 Bedrooms
Moon Tree 47 Bedrooms – image credits to booking.com

What you’ll like:

  • Free Wi-Fi
  • Rooms come with air conditioning and a fan
  • Bikes available for free
  • Non-smoking rooms
  • Sun terrace, terrace, garden, and coffee house on-site

Good to know:

  • Noise from the streets is audible due to its busy location
  • Limited street parking
  • Near to the Pinang Peranakan Mansion, Khoo Kongsi and Wonderfood Museum
  • Starting Price Per Night: RM125 (2 Pax)
  • Address: 47, Muntri St, Georgetown, 10200 George Town, Penang
  • Contact: +604-264 4021

6. Carnarvon House


This wonderfully restored 19th century Straits Chinese house retains all the classical elements of its time, while still promising a comfortable and pleasant stay.

Carnavron House
Carnavron House – image credits to booking.com

Carnarvon House boasts a scenic courtyard adorned with traditional wooden lattice and shrubs surrounding a trickling fountain.

This one-star rated hotel gives its 5-star peers a run for their money with its first-class hospitality. Including the owner who goes above and beyond to explain the history of the building.

So, if you’re looking for a “home” away from home, Carnarvon House lives up to its billing!

Carnavron House Bedrooms
Carnavron House Bedrooms – image credits to booking.com

What you’ll like:

  • Free Wi-Fi
  • Rooms are equipped with air-conditioning, a wall fan, soft lighting, free toiletries, bottled water, towels, and a high-quality mattress
  • Board games and puzzles available in common space
  • Library
  • Serves delicious traditional Penang breakfast
  • Non-smoking hotel
  • Street parking
  • Rooms offer a garden or city view

Good to know:

  • Sound insulation could be better
  • Within walking distance to Kimberly Road, Penang Street, and Chew Jetty Penang
  • Near to Khoo Kongsi, Prangin Mall and 1st Avenue Penang, Komtar and not far from Pinang Peranakan Mansion
  • Starting Price Per Night: RM148 (2 Pax)
  • Address: 28, Lorong Carnarvon, George Town, 10100 George Town, Pulau Pinang
  • Contact: +604-226 0449

7. The Frame Guesthouse


Situated along Jalan Chulia, this refitted three-story budget hotel in Georgetown was previously a frame maker shop.

The Frame Guesthouse
The Frame Guesthouse – image credits to booking.com

Germaphobes will love their unbeatable hygiene with toilets and common areas cleaned several times a day.

Everything is spic and span, with comfy beds, awesome showers, and strong Wi-Fi to boot!

Besides this, there’s a well-equipped pantry with facilities to make toast, hot drinks, free drinking water, and a microwave too!

Stylishly designed with an industrial theme, The Frame Guesthouse features Twin Rooms, Double Rooms, as well as dormitory setups.

Being an old heritage building, however, you’ll hear some creaks with the wood flooring. And footsteps can be heard quite clearly. Although things usually quiet down by 11 pm.

The Frame Guesthouse Bedrooms
The Frame Guesthouse Bedrooms – image credits to booking.com

What you’ll like:

  • Free Wi-Fi
  • Air conditioning
  • Non-smoking rooms
  • CCTV in common areas
  • Attached-bathrooms available for Twin and Double rooms
  • Shared lounge area, shared kitchen, board games/puzzles, and library

Good to know:

  • Bring earplugs to cancel out noise
  • Ample scooters and bicycles for rental down the road
  • Within walking distance to street food
  • Starting Price Per Night: RM90 (2 Pax)
  • Address: 168, Chulia St, Georgetown, 10200 George Town, Penang
  • Contact: +604-263 8807

8. Rasa Motel


From RM63 per night, the Rasa Motel offers decent comfort alongside the high-cost strip of Penang’s Batu Ferringhi, all on a budget.

Rasa Motel
Rasa Motel – image credits to booking.com

Its décor and interior may be modest, but Rasa Motel gets full marks for its immaculate hygiene, with comfortable rooms and spotless surfaces.

Buoyed by the owner’s bubbly personality, their warmth and authenticity are their true assets.

If you’re looking to get a good night’s rest along Batu Ferringhi with great savings, Rasa Motel is worth checking out.

Rasa Motel Rooms
Rasa Motel Rooms – image credits to booking.com

What you’ll like:

  • Free Wi-Fi
  • Daily housekeeping
  • Family Room and Deluxe Double comes with a television LCD/plasma screen, complimentary instant coffee, mirror, and towels
  • Wheelchair accessible
  • Water sport activities and massages can be booked at the front desk (with additional charges)

Good to know:

  • Good water pressure
  • The blanket is thin so bring along a spare
  • Bring along earplugs
  • Close to Batu Ferringhi Sidewalk Bazaar, Moonlight Bay Beach, Batu Ferringhi Night Market, and Batu Ferringhi Beach
  • Starting Price Per Night: RM98 (2 Pax)
  • Address: Ferringhi Plaza, 186-G26, Jalan Batu Ferringhi, 11100 Batu Ferringhi, Pulau Pinang
  • Contact: +604-8812569

9. Tony’s Guesthouse at Teluk Bahang


If you want to experience living in a traditional village amid lush greenery, then Tony’s Guesthouse is top on the list.

Tony's Guesthouse at Teluk Bahang
Tony’s Guesthouse at Teluk Bahang – image credits to booking.com

Located only 1.3km from the Penang national park, nature lovers can indulge in its natural surroundings, with occasional sightings of wildlife.

A popular haven among road bikers, Tony Guesthouse has a designated garage just for the engines too. Plus, there are ample bicycles readily available for guests to ride around at no additional charge.

The owner and host, Tony, is extraordinarily friendly. He also doubles as a chauffeur, picking up and dropping guests to and from bus stops too!

With a free flow of biscuits, free laundry amenities, free coffee, and spaciously clean rooms, Tony’s Guesthouse makes a perfect watering hole for rugged travelers.

Tony's Guesthouse at Teluk Bahang Rooms
Tony’s Guesthouse at Teluk Bahang Rooms – image credits to booking.com

What you’ll like:

  • Free Wi-Fi
  • Free laundry service
  • Daily housekeeping
  • Shared lounge and TV area
  • Non-smoking throughout with designated smoking areas
  • Shared kitchen with cooking facilities
  • Bicycles for use at no additional cost
  • BBQ space with utensils
  • For adult guests only

Good to know:

  • In front of the Guesthouse is a mini fruit farm. Depending on the season, guests can savor fresh local fruits such as jackfruit, rambutan, or durian.
  • Near the Penang National Park, Escape Theme Park, Entopia Butterfly Park, Teluk Bahang Forest Park; not far from Batu Feringghi Beach.
  • Starting Price Per Night: RM53 (2 Pax)
  • Address: 375 Mk, 1, Jalan Teluk Bahang, Teluk Bahang, 11050 George Town, Pulau Pinang
  • Contact: +6016-4099363


Traveling on a budget doesn’t mean skimping on comfort and amenities, and these best budget hotels in Penang are certainly great places to stay!

Even if it isn’t a 5-star stay, you’ll find yourself recalling the friendly personalities encountered who left indelible memories on your journey.

Besides, there’s never a dull moment in Penang. For more recommendations, check out this extensive list of 27 top things to do in Penang here.

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