The Armenian Street Heritage Hotel is a short walk from its namesake street within George Town's central Unesco World Heritage district. This budget hotel comes with a rooftop bar and lounge with great views overlooking the historic city center. The simple rooms could use minor furnishing updates, but the decor is charming enough at these rates. Several third-party businesses such as convenience shops and a car rental place add value, but the real perks are the nearby local vendors.

The 248-room Tune Hotel Downtown Penang, like others in the budget chain, offers a bare-bones bed-and-shower concept, with almost everything else costing an extra fee. The hotel's base rates are some of the lowest in Penang, and though the rooms in this budget hotel are tiny, the beds are comfortable and the showers are hot. Many don't have windows, a flaw that can be made worse by the extra fee for air-conditioning.