Penang Hotels....
Beach resorts are all concentrated in an area called "Batu Ferranghi".
The high end hotel you quoted is the Shangri La Rasa Sayang. It's sister property is the Golden Sands - which is value for money, next to the bigger one, on the beach, close to food outlets, but you can also use all the facilities and restaurants of the former property and just sign them to your room at the Golden Sands. There is also a 'bus' service that will take you to town (actually it's a shuttle service which links the town Shangri-La to the beach property) for a day of sightseeing.
A property that is nicer than the Shangri-La Rasa Sayang is the Mutiara. It is a bit further out than so it is more secluded and has more or less a beach stretch of its own. All the other ones are close together that you can walk from one to another.
The Bayview is also a nice one but honestly I'd stick to the ones above.
Hope this helps...When are you going BTW?