When I was last in Penang, I stayed at the area known as Bayan Lepas at the U Hotel. It is a budget boutique hotel in a relatively peaceful and unknown part of Penang. Even Penang island friends don’t know where it is. They know the exact area when you mention Tesco Extra Sungai Dua though, which is just behind the blue hotel.
Address: 676, Jalan Sungai Dua, Taman Pekaka, 11700 George Town, Pulau Pinang.
I know there is a U in Blue – I like blue. But what is the U in its name then? It is explained vaguely in their web site as “Urban. Unpretentious. Utterly Unique”. Sounds Like Utter Marketing Speak Bullshit to me. Undisguised 
🙂
It is also near the campus of University of Science, Malaysia or USM in Gelugor. I don’t like that its car park is at the back and very dark at night, Same shit as Tune Georgetown Penang Hotel that I stayed previously and liked. I wanted a fairly cheap hotel as I needed a hotel for several nights to attend the annual St Anne’s Feast in the mainland town of Bukit Mertajam.
Getting on and off either Penang bridges was quite easy due to its location. I also like that the hotel is near food places and many food courts. For its price, it is comfortable, serviceable and functional for someone like me who spends 18 hours outside. Not cheap at about RM150 a night though.
Better book in advance if you are going to St Anne’s in July. See also Hotels in Penang at http://www.mycen.my/hotels-in-penang/