The 100-room, historic Eastern & Oriental Hotel has been in operation since the height of the British Empire when George Town was an important harbor and trading hub. Known locally as the E&O, its colonial pedigree sets it apart from other five-pearl hotels, but it also has a fully modern all-suite addition with private balconies and rainfall showers. The doormen in white knee socks and pith helmets help sell the period experience, and it is one of Malaysia's top romantic spots, thanks to its rich atmosphere, two elegant pools, and fine dining.

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. Travelers looking to visit the historic heart of the city may consider the Armenian Street Heritage Hotel, which is more expensive, but Wi-Fi, air-conditioning, and other amenities are included.