If you go to Penang, stay in a heritage place like 23 Love Lane and get a higher end room. Noordin Mews is nice, but location isn't great.
Looked at that one, looks good.
Have you heard of Cheong Fatt Tze - Blue Mansion? 14 Leith Street, George Town
OR
SAVV Hotel - 39C Pengkalan Weld, George Town
Both of those look solid. Most important to me is being able to walk to the place of interest.