Penang is one of Malaysia’s most fascinating destinations, blending history, culture, and stunning coastal landscapes. This state in the Straits of Malacca is known for its UNESCO-listed capital, George Town, vibrant street food scene, and mix of modern and colonial architecture. In this post, we will discover the best areas to stay in Penang, Malaysia.
In 1786, the British East India Company established a trading post in Penang, which became an important trading hub, attracting influences from China, India, and Europe. Today, its diverse heritage is reflected in landmarks such as Khoo Kongsi Clan House, Pinang Peranakan Mansion, and Fort Cornwallis. George Town’s street art and traditional shophouses make it a cultural hotspot, while nearby areas like Batu Ferringhi offer beautiful beaches and resorts. Find accommodation in George Town’s Historic District.
Other must-visit attractions in Penang include the hilltop Kek Lok Si Temple, the funicular-accessed Penang Hill, and the vibrant Gurney Drive, famous for its hawker stalls and seafront views. For those who love nature, Penang National Park and Tropical Spice Garden provide a lush escape from the city.
Penang has a tropical climate, with temperatures averaging 77–89 ºF (25–32 ºC) year-round. The dry season from December to March is the best time to visit, while the wet season from April to November brings occasional heavy rains.
Penang is well-connected by air via Penang International Airport (PEN), located 10 mi (16 km) south of George Town. The airport offers flights to major cities across Asia. Frequent passenger trains connect Butterworth, on the mainland, to Kuala Lumpur and other parts of Malaysia, providing another way to reach the island. Travelers can also arrive by ferry from Butterworth, which docks in George Town, or by crossing the Penang Bridge, one of Southeast Asia’s longest bridges.
Public transport on the island includes Rapid Penang buses, which serve most districts. However, many visitors prefer using ride-hailing services like Grab or renting motorbikes for flexibility when exploring Penang’s neighborhoods and towns.
What are the best areas to stay in Penang?
The Penang State consists of Pulau Pinang and a portion of the mainland comprising Seberang Perai and Butterworth. The island’s eastern coast is the most developed, with George Town as its cultural and economic hub, while the western side remains largely untouched, featuring lush forests, fishing villages, and secluded beaches.
The best area to stay in Penang is George Town’s UNESCO Heritage District, the island’s cultural and historical heart. It offers well-preserved colonial architecture, vibrant street art, world-class hawker food, and easy access to top attractions, making it an ideal base for exploring Penang’s rich heritage. Find accommodation in George Town’s Historic District.
Other great areas to consider when wondering where to stay in Penang include Batu Ferringhi Beach, Tanjung Bungah, the small towns around Penang National Park, and Butterworth.
Keep reading to find out more about the best areas to stay in Penang.
1. George Town Heritage District
The best location for culture and history
The mix of culture, history, and convenience makes the George Town Heritage District the best area to stay in Penang.
George Town Heritage District is the historic heart of Penang, known for its well-preserved colonial architecture and cultural diversity. Recognized as a UNESCO World Heritage Site since 2008, the district spans showcases a blend of British, Chinese, Indian, and Malay influences. Its walkable streets are lined with historic buildings, bustling markets, and some of the best street food in Malaysia.
Established as a trading post by the British East India Company in 1786, George Town became an important commercial hub, attracting merchants and settlers from across Asia. This multicultural past is reflected in its streets, where Chinese clan houses stand beside Indian temples, mosques, and colonial mansions.
Among its most notable landmarks is the Cheong Fatt Tze Mansion, also known as the Blue Mansion, a striking example of 19th-century Chinese architecture with its indigo façade and intricate wooden carvings. The Khoo Kongsi Clan House stands out for its elaborate design. Religious diversity is evident at Kapitan Keling Mosque, an elegant 19th-century structure built by Indian Muslim traders, and the Sri Mahamariamman Temple, the oldest Hindu temple in Penang.
Beyond historical landmarks, George Town is a haven for food lovers. The district is home to some of Malaysia’s most famous hawker stalls. The local coffee shop culture thrives here. At night, the district offers a mix of quiet heritage bars, vibrant night markets, and live music venues.
For a break from the urban scene, Penang Hill and the Botanical Gardens are within easy reach. Public transport in the district is efficient, with the free CAT shuttle bus connecting key locations. Many visitors also opt to explore on foot, by bicycle, or using ride-hailing services.
George Town Heritage District offers a range of accommodations, from budget-friendly hostels in restored shophouses to luxury boutique hotels in colonial mansions.
Learn more about the best areas to stay in George Town, Penang.
Our hand-picked accommodations in George Town City Centre
Cheong Fatt Tze – The Blue Mansion
Housed in a Chinese courtyard-style mansion, The Blue Mansion offers boutique accommodations tastefully furnished with antique fittings. It has a library and free parking and is located within Georgetown’s UNESCO district.
2. Batu Ferringhi
The best location for a beach holiday in Penang
Known for its long stretches of golden sand and clear waters of the Andaman Sea, Batu Ferringhi is a top choice for staying by the beach on Penang Island.
Batu Ferringhi is Penang’s most famous beach destination, located 11 mi (18 km) northwest of George Town along the island’s northern coast.
The area’s main attraction is its beach, which offers a variety of water sports, including parasailing, jet skiing, and banana boat rides. For a more relaxed experience, visitors can stroll along the shoreline, enjoy a beachside massage, or dine at one of the many seaside restaurants. Batu Ferringhi’s Night Market is another major draw, with vendors selling local crafts, souvenirs, and street food every evening along the main road.
For those interested in nature and adventure, ESCAPE Theme Park is a short drive away and features thrilling rides and obstacle courses in a natural jungle environment. Nearby, the Tropical Spice Garden showcases local and international plant species in a lush setting.
Public transportation in Batu Ferringhi consists of Rapid Penang buses, which connect the area to George Town and other parts of the island. Taxis and ride-hailing services are also widely available.
Batu Ferringhi is ideal for those looking for a beachfront escape while still being within reach of Penang’s cultural and urban attractions. With a mix of luxury resorts, mid-range hotels, and budget guesthouses, it caters to different types of travelers.
Our hand-picked accommodations in Batu Ferringhi
Shangri-La Golden Sands, Penang
Featuring outdoor pools, a mini waterpark, two slides, and a whirlpool in landscaped grounds, Shangri-La Golden Sands, Penang, is a four-star property in the center of Batu Ferringi Beach. Free WiFi is available.
3. Bayan Lepas
A Convenient location near the airport
Bayan Lepas is a practical choice for travelers with early flights or long layovers in Penang.
Bayan Lepas is a major commercial and industrial hub located 10 mi (16 km) south of George Town on Penang Island. The area has grown rapidly over the years, with modern shopping malls, residential developments, and key transportation infrastructure.
The district is best known for housing Penang International Airport (PEN), the island’s main gateway. As one of Malaysia’s busiest airports, it handles domestic and international flights, connecting Penang to key destinations in Southeast Asia, East Asia, and the Middle East. The airport is a hub for Malaysia Airlines, AirAsia, and Firefly, with routes to cities such as Kuala Lumpur, Singapore, Bangkok, Hong Kong, and Jakarta.
Beyond its industrial significance, Bayan Lepas has several attractions. The Snake Temple, built in 1850, is one of the most famous landmarks, known for its resident pit vipers that roam freely in the temple halls. Nearby, the SPICE Arena serves as a major venue for concerts, exhibitions, and sporting events. Queensbay Mall, the largest shopping center in Penang, features a wide selection of international brands, restaurants, and entertainment options.
The district also offers access to natural areas such as Bukit Jambul Hill, a small but scenic hiking spot with views over the city and coastline. Meanwhile, Pulau Jerejak, a short ferry ride away, is a former penal colony turned eco-resort with outdoor activities like cycling, kayaking, and jungle trekking.
Public transportation in Bayan Lepas includes Rapid Penang buses, which connect the district to George Town and other parts of the island. Ride-hailing services are widely available, and the Penang Bridge provides a direct link to the mainland city of Butterworth.
Accommodation options range from business hotels catering to corporate travelers to budget-friendly stays near the airport.
Our hand-picked accommodations in Bayan Lepas
AC Hotel by Marriott Penang
AC Hotel by Marriott Penang is conveniently located a 10-minute drive from Penang International Airport. It features an outdoor swimming pool and an in-house restaurant. Free Wi-Fi is available.
4. Penang National Park
The best location for nature lovers
The Penang National Park area is ideal for travelers looking to immerse themselves in nature.
Penang National Park is a protected area on the northwestern tip of Penang Island, known for its rich biodiversity and scenic coastal trails. Covering 10.5 square miles (27 square km), it is one of the smallest national parks in the world but offers a variety of ecosystems, including mangroves, rainforests, and pristine beaches.
The park is home to wildlife such as macaques, monitor lizards, and over 150 species of birds. Popular activities include jungle trekking, boat rides, and camping, making it an excellent destination for nature lovers.
The park’s main entrance is in Teluk Bahang, a small fishing village featuring attractions like the Entopia Butterfly Farm, the Tropical Spice Garden, and the Teluk Bahang Dam, Penang’s largest reservoir with scenic viewpoints. For a more off-the-beaten-path experience, Sungai Pinang offers a quieter alternative. The area is known for its fresh seafood, stilt houses, and mangrove forests, giving visitors a glimpse of Penang’s traditional fishing communities.
Within Penang National Park, key attractions include Monkey Beach, a popular spot accessible by boat or hiking, and Pantai Kerachut, where visitors can find a seasonal turtle conservation center. The park also features Canopy Walkway, an 820-ft (250-m) suspended bridge offering treetop views of the jungle. A boat service connects different beaches within the park.
5. Tanjung Bungah
One of the best beach areas to stay in Penang
Quieter than Batu Ferringhi and George Town, Tanjung Bungah is a beachside location on Penang’s northern coast.
Tanjung Bungah is a coastal suburb located 6 mi (10 km) northwest of George Town. It is positioned between the bustling Batu Ferringhi beach area and the city center. Once a quiet fishing village, it has transformed into a residential and resort district.
The area is known for its beaches, less crowded than those in Batu Ferringhi, making them ideal for a quieter seaside experience. While the waters here are not as suitable for swimming due to occasional jellyfish, the scenic coastline and ocean views make it popular for walks and beachside dining. The Penang Floating Mosque, built on stilts over the sea, is one of the area’s standout landmarks.
Outdoor activities are a major draw in Tanjung Bungah. Penang Water Sports Centre offers sailing and kayaking, while nearby Teluk Bahang Forest Park provides hiking trails through lush tropical landscapes. The area is also home to the Penang Toy Museum, which showcases an extensive collection of collectible figurines and nostalgic memorabilia.
Public transportation is available through Rapid Penang buses, which run along the coastal road connecting Tanjung Bungah to George Town and Batu Ferringhi. Taxis and ride-hailing services are also easy to find.
With many mid-range hotels, seaside resorts, and serviced apartments, Tanjung Bungah is one of the best locations to stay on Penang Island.
6. Butterworth
A convenient area to stay in Penang
Butterworth is known for its local atmosphere, transport links, and traditional markets, offering a different experience from Penang Island’s more tourist-oriented areas.
Butterworth, located on the mainland of Seberang Perai, serves as Penang’s main transport hub and an important commercial and industrial center. It sits opposite George Town, with direct connections via ferry and the Penang Bridge, making it a strategic gateway for travelers arriving by land or rail.
The town is home to several notable attractions, including Tow Boo Kong Temple, one of Malaysia’s grandest Taoist temples, and the Nine Emperor Gods Temple, which hosts an important annual festival. Bagan Ajam Beach, located a short drive away, offers a quieter coastal retreat compared to Penang’s island beaches.
As Penang’s main rail gateway, Butterworth is served by frequent passenger trains connecting to Kuala Lumpur, Hat Yai, and other destinations. The Butterworth Ferry Terminal provides regular services to George Town, while buses and taxis link the area to different parts of Seberang Perai and Penang Island.
Accommodation in Butterworth includes budget hotels, mid-range business lodgings, and serviced apartments, catering mainly to business travelers and those seeking easy transport access.
