Budget hotel as the name suggest provides travellers who are on a tight budget with a basic accommodation without much frills or services at a “budget price”. Penang is no stranger to this concept of accommodation. It started to mushroom in the 60’s and 70’s even when the promotion of the tourism industry in Malaysia was at its infancy stage. Penang has already seen an influx of backpackers mainly from Europe and America visiting this exotic state, especially the island. In those days, the enclaves around Chulia Street and Batu Ferringhi have been home to many budget hotels and remains so up to this very day.

Today there are more of these hotels and most of them are widely spread out. This is the testimonial as travellers find them not only value for money but also its strategic location which is usually a stone's throw from Penang's major historical landmarks and tourist attractions. Some of these hotels are from restoration and refurnishing of old colonial bungalows, pre-war houses and estate homes. Some of them still have the original mosaic-tiled flooring, intricate artwork and inner courtyard and the wooden shuttered windows. This type of accommodation gives the travellers a more homely and cosy feeling and even the landlords are very helpful and friendly. It gives the guest a more captivating stay at their premises. Best of all, they are cheaper!

The Cathay Hotel, an all brilliant white colonial building gives their guests an experience of mesmeric colonial-style living with moderately priced, clean and comfortable air-conditioned rooms. This building definitely has a charm and character of its own that one will not find in any star hotel. Other guesthouse that can give you such enthralling experience of colonial-style living are The Hutton Lodge (at Hutton Lane), 100 Cintra Street Hotel (at Cintra Street), Travellers Lodge (at Muntri Street), Old Penang GuestHouse (at Love Lane), Olive Spring Hotel (at Chulia Street) and Blue Diamond Hotel (at Chulia Street). These premises were all previously colonial mansions, buildings or pre-war shop houses that are converted into charming and easy going accommodation for the budget conscious travellers. They provide basic amenities like clean linen and duvets, towels and simple breakfast but not all have attached toilets in every room. Most, if not all will have TVs and internet connection in the lounge. Further out of the city centre, is the Paramount Hotel that gives you the old Penang charm.  Located in the millionaire row it is tucked in between rows of old mansion which was once owned by a tycoon.

Not all budget hotels are housed in old colonial buildings. There are many available in newer buildings with Broadway Budget Hotel located right in Little India, Friendship Motel in Penang Street, Good Hope Inn Penang (very near Gurney Drive) and YMCA of Penang Hostel. All of them are conveniently located along bus routes and right in the centre of attractive sites.

For those back packers who prefer a relaxing stay at the beaches of Batu Ferringhi, there are some clean and affordable accommodations too. A simple room will cost around RM30.00 per person. Some rooms come fitted with air conditions and attached bathroom or common standard room with ceiling fan and shared bathroom. Ali’s Ferringhi Guest House is an affordable budget accommodation for anyone. The rooms are single, double or family-size, all furnished and some with air conditioning or fan and attached bathroom. This budget hotel is on the bus route and the alighting place would be at the post office. A well maintained guest house would be the ET Budget Guesthouse with all of its room fully equipped with mosquito nets. The others are Shalini's Guest House, Ah Beng Guest House, Baba's Guest House and Ismail's Beach Guest House which are all close by to each other.

We can see that there are numerous budget hotels located all over in Penang, with some strategically located and some a little far out of town. I am sure travellers will find one that suits their budget.

Here are the locations of some budget hotels, guest house and motels:

George Town

Ai Goh Hotel
 465 Penang Road 
10000 Penang
 - Tel: 04-2629922 Fax: 04-2629922
  Rooms: 20; Room Rates (RM): 35-55;
 Facilities: Car Park, Air Condition, Hot Water

Banana Guest House Chulia Street 10000 Penang - Tel: 04-2626171; Rooms Rates (RM) 18-60; Facilities: Wifi, Cafe/Restaurant, Car Park, Air Condition, Hot Water, Laundry

Ban Aun Hotel 
224, Jalan Prangin 
10300 Penang
 - Tel: 04-2620421
; Rooms: 7; Room Rates (RM): 20; 
Facilities: Car Park

Blue Diamond Hotel 
422, Leboh Chulia 
10200 Georgetown, 
Penang
 - Tel: 04-2611089 
Rooms: 40; Room Rates (RM): 20-45; 
Facilities: Cafe/Restaurant, Car Park, Air Condition, Hot Water, Laundry

Broadway Hostel
 35-F, Jalan Masjid Kapitan Keling 
10200 Penang - 
Tel: 04-2628550 Fax: 04-2635597; 
Rooms: 2;1 Room Rates (RM): 22-43; 
Facilities: Car Park, Air Condition, Hot Water

Cathay Hotel 
No.15, Leith Street 
10200 Penang
 - Tel: 04-2626271 Fax: 04-2639300; 
Rooms: 37; Room Rates (RM): 57-92; 
Facilities: TV, Air Condition, Hot Water

Chusan Hotel No.6 Jalan Tanjung Tokong 
10470 Penang - 
Tel: 04-8908255 Fax: 04-8908255; 
Rooms: 16; Room Rates (RM): 55-66; 
Facilities: TV, Car Park, Air Condition, Hot Water

Eastern Hotel
 509, Chulia Street 
10200 Penang
 - Tel: 04-2614597 Fax: 04-2610008; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Rooms: 21; Room Rates (RM): 25-35; 
Facilities: Air Condition, Hot Water

Eng Loh Hotel 
48, Lebuh Gereja 
10200 Penang - 
Tel: 04-2615526
; Rooms: 12; Room Rates (RM): 20-35; 
Facilities: Air Condition

Fantasy Hotel
 23, Lebuh Street 
10200 Penang - 
Tel: 04-2614118; 
Rooms: 13; Room Rates (RM): 20-50; 
Facilities: TV, Air Condition, Hot Water

Friendship Motel 
20, Penang Street 
10200 Georgetown 
Penang - 
Tel: 04-2618909 Fax: 04-2625909; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Website: www.friendship-motel.com.my; 
Rooms: 45; Room Rates (RM): 45
; Facilities: TV, Car Park, Air Condition, Hot Water, Laundry

Good Hope Inn Penang
 22, Jalan Kelawai 
10250 Penang - 
Tel: 04-2290111 Fax: 04-2290222; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Rooms: 56; Room Rates (RM): 55-105; 
Facilities: TV, Car Park, Credit Card, Air Condition, Hot Water, Laundry

Garden In Hotel
 41, Jalan Anson 
Pulau Pinang - Tel: 04-2277691

Hang Chow Hotel
 511, Chulia Street 
10200 Georgetown Penang - 
Tel: 04-2610810; 
Rooms: 13; Room Rates (RM): 30-50

Hotel Central
 406, Penang Road 
10000 Penang - 
Tel: 04-2266411 Fax: 04-2271689
; Rooms: 69; Room Rates (RM): 57-69
; Facilities: TV, Car Park,
Hotel Regal
 No.6, Transfer Road 
10050 Penang
 - Tel: 04-2279584 Fax: 04-2299512
; Rooms: 64; Room Rates (RM): 46-78
; Facilities: TV, Car Park, Air Condition, Hot Water, Laundry

Hotel Golden City
 12, Lorong Kinta 
10400 Penang - Tel: 04-2279910 Fax: 04-2278861; 
Rooms: 120; Room Rates (RM): 70-120; 
Facilities: Cafe/Restaurant, TV, Car Park, Air Condition, Hot Water

Hotel Hong Ping
 273, Lebuh Chulia 
10200 Penang - Tel: 04-2625243 Fax: 04-2623270; 
Rooms: 58; Room Rates (RM): 59-80
; Facilities: TV, Car Park, Credit Card, Air Condition, Hot Water

The Hutton Lodge
 17 Jalan Hutton
Georgetown 
Pulau Pinang - Tel: 04-2636003; Room Rates (RM): 26-60

Hotel Noble
 No.12, Leboh Carnovan 
10100 Penang - 
Tel: 04-2632372 Fax: 04-2632372; 
Rooms: 25; Room Rates (RM): 25; 
Facilities: Car Park

Hotel Waterfall
 160, Jalan Utama 
10450 Penang - Tel: 04-2295588 Fax: 04-2275588; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Website: www.hotelwaterfall.com; 
Rooms: 39; Room Rates (RM): 75-270; 
Facilities: Cafe/Restaurants, TV, Car Park, Credit Card, Air Condition, Hot Water, Laundry

International Hotel
 90/92 Jalan Transfer (First Floor) 
10050 Penang
 - Tel: 016-4342775; 
Rooms: 10; Room Rates (RM): 25-35

Kim Sun Hotel
 86, Leboh Campbell 
10100 Penang
 - Tel: 04-2610657; 
Rooms: 18; Room Rates (RM): 30-50; 
Facilities: Car Park, Air Condition, Hot Water

Love Lane Inn
 54, Love Lane 
10200 Penang - 
Tel: 016-4198409

Mingood Hotel
1 64, Argyll Road 
10050 Penang
 - Tel: 04-2299922 Fax: 04-2280768; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Website: www.hotelmingood.com; 
Rooms: 50; Room Rates (RM): 78 - 138; 
Facilities: Cafe/Restaurants, TV, Car Park, Credit Card, Air Condition, Hot Water, Laundry

Modern Hotel
 179-C, Leboh Muntri 
10200 Penang
 - Tel: 04-2635425 Fax: 04-2635424; 
Rooms: 20 Room; Rates (RM): 20 - 50
; Facilities: TV, Air Condition, Hot Water

New Asia Hotel 
110, Jalan Pintal Tali ( Ropewalk) 
10050 Lebuh Kimberly
 Penang
 - Tel: 04-2613599 Fax: 04-2610008
; Rooms: 24; Room Rates (RM): 20-30; 
Facilities: Car Park, Air Condition, Hot Water

New Savoy Hotel 
156, Jalan Hutton 
10100 Penang
 - Tel: 04-2266933; 
Rooms: 20;  Room Rates (RM): 39-44; 
Facilities: Car Park, Air Condition, Hotel

Old Penang Guesthouse
 53, Love Lane 
10200 Georgetown
 Penang
 - Tel: 04-2638805
; Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Website: www.oldpenang.com

Olive Spring Hotel
 300 – 302 Chulia Street
10200 Penang -  
Tel: (604) 261 4641

Oriental Hotel
 105, Penang Road 
10000 Penang - 
Tel: 04-2634211 Fax: 04-2635395
; Rooms: 97; Room Rates (RM): 60-160; 
Facilities: Cafe/Restaurant, TV, Car Park, Credit Card, Air Condition, Hot Water

Paramount Hotel
 48F, Jln Sultan Ahmad Shah 
10050 Georgetown, 
Penang - 
Tel: 04-2273649 Fax: 2281597; 
Rooms: 20; Room Rates (RM): 50-70; 
Facilities: Cafe/Restaurants, TV, Car Park, Air Condition, Hot Water

Paris Hotel
 No.2 Jalan Irving 
10400 Penang - 
Tel: 04-2272798; 
Rooms: 15; Room Rates (RM): 20-30; 
Facilities: Car Park, Air Condition, Hot Water

Peking Hotel
 50-A, Penang Road
10400 Penang - Tel: 04-2636191; 
Rooms: 50; Room Rates (RM): 50; 
Facilities: TV, Air Condition, Hot Water

Pin Seng Hotel
 82, Love Lane 
10200 Penang
 - Tel: 04-2619004; 
Rooms: 24; Room Rates (RM): 20-30; 
Facilities: Car Park, Laundry

PP Island Hotel
 33 A, Abu Siti Lane
10400 Penang - 
Tel: (604) 2299 071 
Fax: (604) 2299 072; 
Website: www.ppislandhotel.com; 
E-Mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Singapore Hotel
 No 495-H, Penang Road 
10000 Penang - 
Tel: 04-2620323
; Facilities: TV, Car Park, Air Condition, Hot Water, Laundry

Swiss Hotel 
431-F, Chulia Street
10200 Penang - 
Tel: 04-2620133
; Rooms: 24; Room Rates (RM): 30; 
Facilities: Car Park

Thye Aun Hotel
 94, Jalan Pintal Tali 
10100 Penang
 - Tel: 04-2610077

Towne House Hotel
 70, Penang Road 
10000 Penang - 
Tel: 04-2638621 Fax: 04-2623541; 
Rooms: 50; Room Rates (RM): 59-69
; Facilities: Cafe/ Restaurant, TV, Car Park, Air Condition, Hot Water

Tune Hotels.com – Downtown Penang
100, Jalan Burmah 
Section 15, Georgetown 
10050 Penang - Tel: +6(03)-7962 5888
 
Website: www.tunehotels.com

Trang City Hotel
 22, Jalan Trang 
10150 Penang - 
Tel: 04-2260001 Fax: 04-2299657; 
Rooms: 25; Room Rates (RM): 30-60; 
Facilities: Air Condition, Hot Water

Waldorf Hotel
 13, Leith Street
 10200 Penang
 - Tel: 04-2626141 Fax: 04-2637906; 
Rooms: 52; Room Rates (RM): 52-60
; Facilities: TV, Car Park, Air Condition, Hot Water

White House Hotel
 72, Penang Road
 10000 Penang - 
Tel: 04-2632385
; Rooms: 24; Room Rates (RM): 24-40; 
Facilities: TV, Car Park, Air Condition, Hot Water, Laundry

YMCA of Penang Hostel
 211, Jalan Macalister 
10450 Penang - 
Tel: 04-2288211 Fax: 04-2295869; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Website: www.ymcapg.com
; Rooms: 70; Room Rates (RM): 70-105; 
Facilities: Cafe/Restaurant, TV, Meeting Room, Car Park, Credit Card, Air Condition, Hot Water, Gym, Laundry

100 Cintra Street 
100 Lebuh Cintra
Georgetown, 
Pulau Pinang 10200

Tanjung Bungah and Batu Ferringhi

Ali's Feringghi Guest House
 53-54B, Batu Feringghi 
11100 Penang
 - Tel: 04-8811316 Fax: 04-8814015; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Lone Pine Hote l
97, Batu Feringghi 
11100 Penang - 
Tel: 04-8811511 Fax: 04-8811282; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 
Website: www.lonepinehotel.com
; Rooms: 49; Room Rates (RM): 180-780; 
Facilities: Cafe/Restaurants, TV, IDD Tel, Internet, Meeting Room, Car Park, Safe Box, Credit Card, Air Condition, Hot Water, Swimming Pool, Laundry

Motel Sri Pantai
 516-G, Jalan Hashim 
11200 Tanjung Bungah
 Penang
 - Tel: 04-8909728 Fax: 04-8909729; 
Rooms: 17; Room Rates (RM): 84-95; 
Facilities: Cafe/Restaurant, TV, Car Park, Air Condition, Hot Water, Bar/Lounge, Laundry

Seberang Prai

Beach Garden Hotel 4835, Jalan Pantai 
12000 Butterworth
 Penang - 
Tel: 04-3322845 Fax: 04-5389101; 
Rooms: 20; Room Rates (RM): 50-80
; Facilities: Car Park, Air Condition, Hot Water

Butterworth Travel Lodge
 No.1, Lorong Bagan Luar Satu 
12000 Penang - 
Tel: 04-3333399 Fax: 04-3323599
; Rooms: 45; 
Facilities: Cafe/Restaurant, TV, Meeting Room, Car Park, Credit Card, Air Condition, Hot Water, Laundry

Hillside and Others
Hotel Bellevue
Bukit Bendera Penang Hill 
11300 Penang
 - Tel:04-8299500 Fax: 04-2297393; 
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ;  
Rooms: 12; Room Rates (RM): 130-160
; Facilities: Credit Card, Laundry