I haven't been in awhile (>10yrs) but Penang Mutiara Beach Resort is also a contender for best beach hotel there. It's a little further away from town, towards the end of the road (map =
http://www.hoteltravel.com/malaysia/...ringhi_map.htm). The Mutiara has a webpage on
www.lhw.com as part of the Leading Hotels of the World chain as well as their own website at
http://www.mutiarahotels.com/ but you may want to price compare them on other sites to get the best rates.