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Need a place to say, but without Shangri-La’s price tag? Here are our top budget finds in this friendly north Malaysian town.

Ryokan Muntri Boutique Hostel

Ryokan Muntri Boutique Hostel 宿舍, George Town

Boutique Hotel, Hostel

If your top priorities are cleanliness and security, look no further. Ryokan’s Peranakan-style exteriors belie the crisp, contemporary feel inside (think cove lighting, bean bags, and no-frills bunk beds). Everything is spic-and-span, and you need a fob key to get in and out. Location is central, without the noise.

Courtesy of Tipsy Tiger Party Hostel

Tipsy Tiger Party Hostel, George Town

Hostel, Hotel

The only “party hostel” in town, this is the place to hit if you want to get tipsy with your new roomies. With two free drinks every night and an all-you-can-drink deal starting at 35 MYR (about 9 USD), it’s basically spring break every day. Good for younger travelers.

The 80’s Guesthouse

The 80's Guesthouse, George Town

Hostel, Guesthouse

At the heart of Love Lane (pun? no?), this shophouse-turned-hostel offers comfy, clean beds in air-conditioned rooms for under 60 MYR (15 USD) a night. Breakfast is basic (toast and coffee), the sinks are old school (fat, flat slabs of concrete), and the walls peel a little (for the old “historic” vibe), but it’s a quirky treat nevertheless.

SIOK Hostel

SIOK Hostel

Budget Hotel

This budget house sits bravely at the fork of Penang Road and Chulia Street. Roomy, modern, and well-lit, SIOK (loosely translated as “exciting”) is next door to a famous nasi kandar place, Line Clear, and two streets away from colorful Little India. Watch the stars from the rooftop terrace, or play table football in the common lounge.

Courtesy of MoonTree 47

Moon Tree 47, Georgetown

Hotel

This charming place will make you feel like you’ve stepped back half a century. With an open courtyard, gossamer mosquito nets, and steep staircases without handrails, MoonTree is Peranakan brought forward into the 21st century. Rooms are clean and bright. Leafy plants and resident cats abound.

Wassup Youth Hostel

Wassup Youth Hostel, George Town

Hostel, Hotel

If you’re not fussy, this budget hostel will have fun decor and a great lounge area to make up for its less-than-super-clean rooms. Located on the fiercely busy Penang Road, you’ll be hard pressed to find a livelier place to stay.

Courtesy of House of Journey

House of Journey Hostel & Guesthouse, Penang

Hostel, Guesthouse

If you want a good shower, House of Journey will give you the best (on this list). The rain-head system makes you feel like you’re standing under a waterfall, after which your face will be soft and supple as a baby’s bottom. Close to Little India and George Town’s glow-in-the-dark bar, Curacao.

The Frame Guesthouse

The Frame Guesthouse, George Town

Guesthouse, Hotel

With funky cafés, spirited bars, and lip-smacking street food, is it any wonder that Chulia Street is the go-to place for travelers? When you’re done partying it down, The Frame offers clean beds in a modern-minimalist setting, complete with pendant lights and marble countertops. If you need it, their laundry service is quick and cheap, too.

About the author

Michelle is your textbook freelancer. She writes on a 13'', visits boutique cafes in old rustic towns, and travels the world every 80 days.

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