The best area to stay in Penang when you visit first

Last Updated on May 2, 2026 by Ioana

Penang is a great destination and I think you should include it in your Malaysia itinerary besides Kuala Lumpur. In this blog post I will share the best area to stay in Penang when you visit for the first time to help you plan your trip. This post contains affiliate links. When you make a purchase I may get a small commission at no extra cost to you. Find out more here.

Georgetown

Georgetown is a UNESCO World Heritage Site and the capital of Penang Island. It has a rich history, plenty of heritage buildings, great restaurants, and street art.

I think it’s the best area to stay when you’re in Penang for the first time since a lot of the attractions are within walking distance. This is where I stayed too when I visited Penang.

Savv Hotel

⭐️⭐️⭐️ • 9.1/10 (1,750 reviews)
💲 Budget • 👉 Check current prices here

I stayed at SAVV Hotel, a boutique hotel by the Chew Jetties. I got a cozy single room that had a view of the water and the Jetties. 

The windows had an oval shape that was trying to mimic the windows of a ship. I found that really cute.

The hotel was clean, the staff was friendly, and the location was perfect. I could walk anywhere in Georgetown.

The room was not very large, but you still had plenty of space to walk comfortably from one spot to another. The air conditioning was powerful and working well, which is a must in the hot and humid weather of Penang. The free wifi also worked great.

The hotel had an outdoor pool as well. It wasn’t very deep, but it was great to cool down a bit after exploring in the hot and humid weather. The hotel provided free towels to use at the pool, you just need to go to the front desk to get them.

I can’t tell you how good the breakfast buffet is because I opted for a stay without breakfast. Penang has such good food, so I didn’t want to waste any meal. I recommend you do the same so you can try as many restaurants as possible in Penang.

​Overall, it was a very comfortable stay. The hotel was in a central location and the price was very affordable. And I loved that you can get a single room, which is perfect for solo travelers.

Eastern & Oriental Hotel

⭐️⭐️⭐️⭐️⭐️ • 9.1/10 (3,399 reviews)
💲 Luxury • 👉 Check current prices here

Malaysia has affordable hotel prices, so if you prefer staying in luxury hotels, this is the perfect opportunity to do it. I recommend Eastern & Oriental Hotel because it is one of the top hotels in Penang.

The hotel is in a British colonial-style building that was built in 1855. It used to be the best hotel back in the day. The founders had such great success with this hotel that they opened Raffles Hotel in Singapore and The Strand Hotel in Burma.

Unfortunately the founders did not adapt to the competition after World War II, so the hotel had a period of decline. But it was reconstructed in the late 1990’s and reopened to the public in 2001.

It’s one of the heritage hotels in the heart of Georgetown that managed to survive across centuries. 

The hotel has an ideal location facing the sea, so you’ll be able to enjoy a beautiful view. 

It offers plenty of on-site dining options for all tastes. There is a restaurant serving European dishes and another one serving Asian dishes. The hotel also has a cocktail bar and a lounge.

You can also take advantage of their swimming pool facing the sea and their spa.

The Cheong Fatt Tze Mansion (The Blue Mansion)

⭐️⭐️⭐️⭐️ • 9.4/10 (1,200 reviews)
💲 Mid-range • 👉 Check current prices here

Another really cool accommodation option in the heart of Penang is the Blue Mansion or The Cheong Fatt Tze Mansion. This is a historical mansion with a lot of history that was also featured in many movies, including Crazy Rich Asians.

It is one of the two most famous Peranakan mansion on Penang Island. The other one is Pinang Peranakan Mansion.

The term Peranakan describes the descendants of Chinese men who came to Malaysia and married Malay women. The other word for it is Baba-Nyonya, where Baba is the name used for a boy and Nyonya for a girl.

Many Chinese men came to Malaysia to set up the tin mining business since they had previous experience with it. And of course, they stayed and built families there, which led to the creation of this new culture.

Cheong Fatt Tze was a very successful businessman, nicknamed the Rockefeller of Asia. He used to be the richest man in Asia.

He expanded his trading and banking businesses to Penang, where he used to reside occasionally. So he built the Blue Mansion in Penang.

This building was restored and it is now part hotel, part museum. 

Staying here is a great choice if you like historical buildings with spacious rooms and modern amenities. Just make sure to book in advance since the hotel only has a few rooms available and it’s a very popular accommodation choice among people visiting Penang.

Campbell House Penang

⭐️⭐️⭐️⭐️ • 9.3/10 (612 reviews)
💲 Mid-range • 👉 Check current prices here

Campbell House is one of the best boutique hotels in the heart of Georgetown. The building has been around since 1903. It used to be a budget hotel and then in the 1920’s a working place for the upmarket ladies of the night.

The current owners bought the hotel in 2008 and did a major renovation to preserve the original structure, but create luxurious rooms and modern amenities.

I love the story of the two owners of the hotel. They are husband and wife. She is British-Malay and he is Italian. They met in London while working in hospitality and decided to pursue their dream of owning a boutique hotel.

They gave up their corporate life in London and bought this hotel in Penang. And the rest is history.

Since he is Italian the hotel has an Italian restaurant on-site. And there are plenty of other restaurants nearby since the hotel is located on Campbell Street, right in the heart of Georgetown.

They got multiple awards for this hotel, including the 2023 Traveler’s Choice Award.

If you like boutique hotels that are family businesses then Campbell House could be the perfect place to stay.