
Just a few hours from Kuala Lumpur lies the charming tropical island of Penang, a destination celebrated for its centuries-old architectural marvels, lush rainforests, and golden sandy beaches. Our curated list of the best luxury hotels in Penang in its most popular areas, from George Town to Batu Ferringhi, promises an unforgettable stay on the ‘Island of Pearls’.
Penang is a melting pot of various cultures, including Malay, Chinese, Indian, and European. The influence of Britain’s East India Company can be seen in its unique colonial architecture. Known as the Prince of Wales Island until 1867, George Town, Malaysia’s chief port and the capital of Penang Island, was recognised as a UNESCO World Heritage Centre in 2008. Today, it is the centre of attraction for tourists from all over the world. This historic city boasts a rich collection of colonial-era buildings, including iconic hotels, some of which have stood for decades or have transformed heritage sites into luxurious accommodations.
Places to visit in Penang
Spending around three days in this historic destination is ideal for exploring its heritage, savouring its delicious street food, and enjoying its tropical landscapes. Must-visit attractions to add to your itinerary include Penang Hill, Penang Peranakan Mansion, Kek Lok Si Temple, Khoo Kongsi Clan House and Museum, Chayamangkalaram Buddhist Temple, Penang War Museum, Penang Armenian Street, Fort Cornwallis, Penang National Park, Penang National Park, Entopia by Penang Butterfly Farm, and Penang Botanical Gardens.
November to February is the best time to visit Penang for its cool, dry, and pleasant weather.
How to reach Penang
By air: Penang International Airport (PEN) is in Bayan Lepas, approximately 15 kilometres from George Town, the city centre.
By train: Penang has no railway station, but Butterworth, approximately 4 kilometres away, is well-connected to major cities like Kuala Lumpur. From there, you can take the Penang ferry or a cab to reach George Town, the city centre.
By bus: The main bus station, Sungai Nibong Bus Terminal, is near the Penang Bridge, approximately a 20-minute drive from George Town.
Top 8 luxury hotels in Penang
Whether designed for royalty or inspired by the charm of a bygone era, these luxurious hotels in Penang are centrally located in areas including George Town, Batu Ferringhi and Teluk Bahang. They offer an immersive experience that captures the true essence of Malaysia. Each property combines world-class amenities with local culture and heritage, making your stay as memorable as the island. From opulent beachfront resorts to beautifully restored heritage hotels, the list includes five exceptional accommodations that cater to discerning travellers.
Eastern and Oriental Hotel, Penang (Best luxury)

You can’t talk about luxury hotels in George Town without mentioning the Eastern and Oriental Hotel (E&O). An iconic symbol of luxury on the island, it stands as a true landmark. Built in 1884 by the Sarkies Brothers (also behind Southeast Asia’s Raffles Hotel in Singapore), this colonial-style hotel is elegant and offers stunning views of the Penang Strait.
At this all-suite luxury hotel, stay options are divided into two sections: the Heritage Wing, restored to its former glory in 2019, and the Victory Annexe, which combines old-world charm with modern amenities. The culinary experience at E&O features a variety of restaurants and bars offering Asian, Malaysian, and European cuisines.
- Address 10, Lebuh Farquhar, George Town, 10200 George Town, Pulau Pinang, Malaysia
google map - Website Eastern and Oriental Hotel
- Phone +60 4-222 2000
Angsana Teluk Bahang (Best for private pools)

Overlooking the Andaman Sea, the Angsana Teluk Bahang promises a breathtaking view and a luxurious island getaway. This 5-star property is one of the most beautiful Penang hotels by the beach. It is designed with Peranakan-inspired decor, which incorporates Malay, Chinese, and European elements dating back to the 1840s.
The resort has a variety of sea-view rooms and suites to choose from. Sky Garden sea view suites and suites with private plunge pools are two of their best offerings. For a rich dining experience visit Angsana Teluk, which has five exclusive restaurants and beverage outlets, serving local and global cuisines.
- Address 11, Jalan Teluk Bahang, Teluk Bahang, 11050 Tanjung Bungah, Pulau Pinang, Malaysia
google map - Website Angsana Teluk Bahang
- Phone +60 4-817 0888
Macalister Mansion (Best blend of colonial and modern)

While its classic colonial facade preserves history, the interiors are sleek and contemporary, with stylish rooms featuring wood and glass panels and commissioned artwork. The property boasts a mosaic lap pool with a “swim-up” bar. Macalister Mansion also houses Blanc, a contemporary French restaurant, and The Cellar, a gentleman’s bar offering a wide selection of spirits.
- Address 228, Jln Macalister, 10400 George Town, Pulau Pinang, Malaysia
google map - Website Macalister Mansion
- Phone +60 4-228 3888
Shangri-La Rasa Sayang Penang (Best resort hotel)

Surrounded by tropical gardens, the Shangri-La Rasa Sayang is one of Penang’s best 5-star hotels. What sets this luxurious retreat apart is its Minangkabau-style design, featuring sharp gable roofs and embellished wooden walls, complemented by a lagoon pool.
- Address Jalan Batu Ferringhi, Kampung Tanjung Huma, 11100 Batu Ferringhi, Pulau Pinang, Malaysia
google map - Website Shangri-La Rasa Sayang Penang
- Phone +60 4-888 8888
Cheong Fatt Tze - The Blue Mansion (Best boutique)

Cheong Fatt Tze Mansion, also known as the Blue Mansion for its striking blue hue, is an iconic 130-year-old heritage building in George Town Penang. Built for one of Asia’s wealthiest men, Cheong Fatt Tze, it was home to his seventh (and favourite) wife. The mansion itself was practically a museum, adorned with decorations by artisans from Southern China.
Today, the Blue Mansion is a luxurious, award-winning 18-bedroom boutique hotel with a museum and restaurant. Its rooms are decorated to reflect different Chinese dynasties — Ming, Liang, Tang, and Han. As one of Penang’s top luxury hotels, it also offers stay options in its 100-year-old townhouses, making it one of the hotels in Penang with bathtubs. With spaces like the oriental garden, pool, open courtyards, and private jacuzzis, it’s a place where you’ll feel like royalty.
- Address 14, Lebuh Leith, George Town, 10200 George Town, Pulau Pinang, Malaysia
google map - Website Cheong Fatt Tze
- Phone +60 4-262 0006
This article was first published here.
Related | The Best Hidden Bars In Malaysia’s Penang
(Feature image credit: Angsana Teluk Bahang Penang)
The information in this article is accurate as of the date of publication.
We may earn an affiliate commission when you shop through links on our site.
Tariff of the properties mentioned are subject to change.
FAQs (Frequently Asked Questions)
George Town and Batu Ferringhi are two of the best areas to stay in Penang Island, Malaysia.
Eastern and Oriental Hotel, Angsana Teluk Bahang, Shangri-La Rasa Sayang, Cheong Fatt Tze - The Blue Mansion, and Macalister Mansion are some of the top hotels in Penang.
Shangri-La Rasa Sayang, Eastern & Oriental Hotel, Cheong Fatt Tze - The Blue Mansion, and Macalister Mansion are some of the best hotels to stay in George Town, Penang.
Eastern & Oriental Hotel, Angsana Teluk Bahang, and Shangri-La Rasa Sayang are some of the best beach hotels in Penang.
Yes, the best hotels in Penang offer family-friendly amenities such as safety measures, entertainment options, extra bedding, kids special menus, swimming pools, and indoor and outdoor games.
Yes, there are hotels in Penang that cater to business travellers, like Shangri-La Rasa Sayang. Such properties offer facilities like meeting halls, fitness centres, strong internet connections, and event spaces.
Yes, there are many heritage hotels in Penang, such as Eastern and Oriental Hotel, Macalister Mansion, and Cheong Fatt Tze - The Blue Mansion.
Yes, you can find pet-friendly properties to stay in Penang. Townhouses and private residences are typically open to pet animals.