You can try Tanjung Bungah Hotel / Paradise / Copthorne Orchid Hotel, not sure about the price of the sea sport.

There are more hotels who have their own beach, or you can rent an apartment at Rasa Sayang and walk to the sea

You can try to search for promotion for beach hotels like Copthorne Orchid Hotel.
Or u can try Continental Hotel - near to Upper Penang Road (clubbing and drinking area)
Or even some cheaper motel like Hope Good Inn, heard that it was quite clean and at Gurney area.

Other than that, u can try some heritage hotels in town.

Remember to drop by beach street area for the wall painting, before it was spoilt by people again.

Golden Sands beach has one chinese traditional massage. Not really expensive, something cheaper than Thai Odyssey.
There's one uncle and one muscled guy massage

Should be good, but a little bit of packed maybe?
Depends where do you want to go.

Food trip will be all around the island. I'm not very good in food around the island.
I brought my friends to the places around Butterworth for food. Less tourists, and that's the thing we ate most of the times.

Heritage with murals around - u can do this for evening, when the sun goes down.
Museums around heritage area - u can do this during the sun shining very strongly, as this is indoor and air conditioned.

Bukit Bendera & Kek Lok Si is nearby. So you could do these 2 together. Recommend to go Bukit Bendera early in the morning. The breeze could be cooling sometimes, which I like it.

Batu Feringghi if you would like to relax by the beach.
Teluk Bahang National Park - it's less touristy. This is for those who love nature and go for hiking.
ESCAPE - For those who loves adventure.

You could do cafe hopping as well as bar hopping if you are into those lifestyle.