Someone mentioned the Lone Pine - which I think is a lovely hotel, but sadly on the Malaysian version of Blackpool (donkey rides, dirty water, oil tankers just offshore) but I LOVE Georgetown & the E&O (BUT - there are some amazing small heritage hotels - i've visited a friend at China Tiger Studio Apartments which is fab) with a suggestion to avoid late night clubs as Penang attracts some interesting characters! But just wanted to add for those that want a beach break - there are 2-3 daily flights to Langkawi on Air Asia which take 25 minutes ish from memory, or if you want by road you're closer to Pangkor Laut than from KUL. As you can tell, i'm not a fan of the Penang beaches, but salivate over the food in Georgetown!