Budget Hotels & Hostels in Penang
Budget hotels · Hostels · Backpacker guesthouses
Penang is an easy place to travel cheaply, and the cheapest beds cluster in George Town’s heritage core around Love Lane and Chulia Street. Staying there means you can walk to the hawker centres, street art and clan houses, which saves on Grab fares as well as room rates.
At this end of the market the rooms themselves vary a great deal, so read each listing for what you are getting. For when to book, see our best time to book calendar.
15 hotels
guesthouse
George Town
100 Cintra St
Community-style heritage guesthouse and art residency in an old Cintra Street house in the middle of George Town's UNESCO zone.
budget
Jelutong
Avatel Jelutong (formerly ATTA Hotel Jelutong)
Small hotel on Jalan Bukit Dumbar in residential Jelutong, about 4 km from the George Town heritage core, with a rooftop pool and free parking.
budget
George Town
Broadway Budget Hotel
Budget hotel in a four-storey building at the Pitt Street and Market Street junction, in the middle of George Town's heritage core.
budget
Gurney Drive
Burmahtel
Budget hotel and hostel at Wisma Soon on Jalan Burma, near Pulau Tikus, with family rooms, dorms and free basement parking.
budget
Butterworth
Chariton Hotel Butterworth
Business budget hotel in Taman Jermal Indah on the Butterworth mainland, with 50 rooms, free WiFi, parking and a 24-hour front desk.
budget
George Town
Cititel Express
Budget hotel on Lebuh Noordin in George Town, a short walk from KOMTAR, with 234 simple air-conditioned rooms in three categories.
budget
Batu Ferringhi
D'Feringghi Hotel & Restaurant
Budget hotel on Jalan Batu Ferringhi with 34 rooms, an Arabic-Italian-Malaysian restaurant and free parking, a short walk from the beach and night market.
budget
George Town
Hotel 19
Peranakan-themed budget hotel on Weld Quay in George Town, directly opposite the Penang ferry terminal and the main bus terminal.
budget
George Town
iStay Hotel
Small hotel on Rangoon Road in George Town, next to the Macalister and Burmah Road hawker stalls and about five minutes' walk from Komtar.
budget
George Town
Le Embassy Hotel
A 33-room hotel in a restored 1957 building at the Burmah Road and Transfer Road junction, walkable to Chowrasta Market and KOMTAR.
budget
George Town
Nio Hotel
No-frills hotel at 100 Jalan Burma in George Town, rebranded from Tune Hotel Georgetown Penang to Nio Hotel in 2026. 24-hour front desk, free Wi-Fi.
budget
George Town
Resthub
Adults-only capsule hotel on Jalan Dr Lim Chwee Leong in central George Town, with 40 capsules, self check-in and no front desk.
budget
George Town
Swing & Pillows @ Muntri
Budget co-living stay at 87 Lebuh Muntri in George Town, with shared kitchen, laundry and common areas a short walk from the old town.
budget
George Town
The Small Inn
A budget guesthouse on Lebuh Kimberley in George Town, with simple air-conditioned rooms and a central heritage-core location.
More ways to choose a hotel
Frequently Asked Questions
Where do budget travellers stay in Penang?
Mostly in George Town: 11 of the 15 budget stays on this page are there. The Love Lane and Chulia Street area of the heritage core is the island’s backpacker hub, and staying central saves on transport because so much is walkable.
Are these hostels or hotels?
Both. The list combines hotels recorded as budget hotels with guesthouses whose listing names backpackers among the guests they suit, which in Penang usually means dorm beds or simple private rooms in an old shophouse.
What should I check before booking a cheap room in George Town?
Read the listing for the basics, because they vary at this price: whether the room has air-conditioning or only a fan, whether the bathroom is private or shared, and whether the room has a window. Some budget rooms are windowless. If any of those matter to you, confirm with the property.
When do budget rooms in Penang get scarce?
Chinese New Year, the George Town Festival and school holidays push demand up across the island. Our best-time-to-book guide sets out the month-by-month pattern.