The 10 BEST hotels in Penang, Malaysia, for 2025

But with so much choice of accommodation options in Penang, where to start?

We’ve done the research for you and found these top hotels in Penang. Whether you’re looking for a luxury 5-star Penang hotel, a Penang beach hotel, or want to stay in the heart of bustling George Town, we’ve got you covered.

All you really need to decide is whether to base yourself amongst the history of George Town or the tropical beaches of Batu Ferringhi, as the best hotels in Penang are split between these two destinations. So it may be an idea to first gauge the things you want to do in Penang before deciding between George Town and Batu Ferringhi.

If you’re a budget backpacker looking for a cheap stay or dorm bed, check out our guide to the best hostels in Penang.

The below map displays where our recommended Penang hotels are located:

1. Eastern & Oriental Hotel

★★★★★
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The Eastern & Oriental Hotel, commonly known as the E&O Hotel, is an iconic and historic landmark situated in the heart of George Town. Established in 1885 by the Sarkies Brothers, who also founded the Raffles Hotel in Singapore, the E&O Hotel exudes an old-world charm that transports guests to a bygone era.

It is an absolute treat to stay at the E&O and you will be immersing yourself into Penang’s rich colonial history. The opulent suites and rooms are adorned with luxurious furnishings, and the extensive grounds feature lush gardens and a stunning swimming pool.

The hotel also boasts several restaurants and bars serving a range of exquisite cuisines. From traditional English afternoon tea in the colonial-style Palm Court to fine dining at Sarkies, dining at the E&O Hotel is an experience unto itself. Indeed afternoon tea at the E&O is one of the top things to do in Penang, and even if you only have one day in Penang, we recommend that you stop by.

2. Ren I Tang Heritage Inn

★★★★☆
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Ren I Tang Heritage Inn is located in George Town, in a restored building from the 1800s . Spanning an area of three shop house, this charming, boutique hotel features a herbal courtyard, a restaurant and small museum on the ground floor, which used to be a medical hall. Air wells, timber flooring, five foot walkways, steep heritage wooden staircases and Chinese roof tiles are part of the property. It really is oozing with history and charm.

3. The Edison George Town

★★★★☆
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Set back from George Town’s bustling UNESCO Heritage district, The Edison George Town is a 20th century mansion that has been lovingly restored with an art deco twist. Original details such as the open-air courtyard, marble tiled floors and Paranakan tiles are all in tact, yet bright accents and new furnishings offer a fresh welcome to guests.

Rooms are spacious and thoughtfully decorated. But its the communal areas that make The Edison extra special. Guests will appreciate the communal lounge stocked with snacks, fresh fruit and drinks to enjoy 24 hours a day, which includes a Franke coffee machine. The lounge leads to an al fresco dining area, with a charming landscaped pond. Upstairs, there’s a cosy lounge complete with wooden rocking chairs; the perfect spot to while away a few hours with a good book. The swimming pool also offers an oasis away from the city.

4. PARKROYAL Penang Resort

★★★★★
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Located along the picturesque Batu Ferringhi Beach, PARKROYAL Penang Resort is a tropical 5* escape. As soon as you walk into the foyer, you will feel those holiday vibes.

Situated right on the arguably the best beach in Penang, PARKROYAL Penang Resort also offers two swimming pools, a gym, a spa, and no less than six restaurants. Indeed it can feel rather difficult to leave this perfect oasis offering everything you need. There is also a small waterpark onsite, which is why this Penang hotel is popular with families.

However, you don’t have to stay overnight to enjoy the facilities here. You can actually get a day pass to PARKROYAL Penang Resort for MYR90 per adult and MYR45 per child (kids under 5 are free).

Alternatively, if you’re looking for a slightly cheaper resort with lots of kids activities to keep your little ones busy, check out DoubleTree by Hilton Penang. Although do note that the beach here is rather unimpressive compared to Bat Ferringhi along which PARKROYAL is situated.

5. Shangri-La Golden Sands, Penang

★★★★☆
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Just 700 meters along Batu Ferringhi Beach from PARKROYAL Penang Resort is a 4* Penang beach resort, Shangri-La Golden Sands, where the room rate tends to be slight cheaper. Yet to us, it still seems like a 5* resort, featuring outdoor swimming pools, a mini waterpark, two slides and a whirlpool in landscaped grounds.

This Penang beach hotel is very much geared to families with lots of child-friendly activities, including Splash Zone mini waterpark, Adventure Zone and Kids Club. In fact, the Adventure Zone is also open to non-guests and is a popular Penang indoor activity on a rainy afternoon.

So if you are visiting Penang with kids and want your little ones to be entertained while you relax, the Shangri-La Golden Sands is the place to stay.

6. Hard Rock Hotel Penang

★★★★★
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Another Batu Ferringhi Beach hotel, Hard Rock Hotel Penang was the first Hard Rock Hotel in Malaysia. With ‘party pads’ that have direct pool access, all-you-can-eat breakfast, and direct beach access to watch epic sunsets, this is the hotel choice for wannabe rock stars.

There is a fantastic array of cool restaurants, and parents will appreciate the kids club and onsite waterpark.

7. Cheong Fatt Tze, The Blue Mansion

★★★★☆
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Renowned for its striking blue colour, Cheong Fatt Tze (The Blue Mansion) is a 19th century mansion that is open to the public to visit during the day (you can either book onto an in-person tour or self-guided audio tour).

However, you can also stay here overnight to gain a deeper appreciation of the building’s history. 18 spacious and uniquely furnished rooms fringe the inner courtyard. There is also a fine-dining restaurant and bar serving signature cocktails (as well as a superb Chinese wine) onsite.

8. The Prestige Hotel

★★★★★
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A stones throw from bustling George Town with infinity pool views overlooking the sea to Butterworth, The Prestige Hotel offers contemporised colonial accommodation in an excellent location.

Rooms are spacious, light and airy, and the restaurant provides a lush garden-conservatory feel. This is a well-thought out and elegant hotel that will elevate your stay in Penang.

9. Seven Terraces

★★★★☆
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Built in the late 19th century, Seven Terraces was a contiguous row of Anglo-Chinese terrace houses located just behind the Goddess of Mercy Temple. These have been lovingly restored into a boutique hotel in the heart of George Town, where guests can feel like they’ve stepped into a bygone era.

Featuring a balcony and air-conditioning, the rooms are beautifully ornate and the service impeccable.

10. Courtyard by Marriott Penang

★★★★☆
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For modern, upscale accommodation in downtown George Town, the new Courtyard by Marriott Penang is a fantastic choice, featuring a restaurant, outdoor swimming pool, a fitness centre.

The 199 spacious rooms are exceptionally plush and offer spectacular views over Penang. But the best view is from the outdoor infinity pool, which overlooks Penang Hill.

Head over to Penang Kitchen for an afternoon tea and authentic Malaysian dish or international delight. End your day at Gin Library, one of Penang Island’s first distillery-themed bars featuring spectacular views of Penang’s capital alongside more than 50 curated varieties of gins, whiskeys, spirits and handcrafted cocktails.