I stay at Hotel Malaysia alot of times. 3 star hotel with breakfast. Very budget kind of hotel.

For more comfort, you guys can try out Cititel Hotel, i think the rate is around 155 onwards. Now Hong Leong card holder can enjoy the room from RM140 onwards.

You may try Vistana Hotel too. Always pack and full. The rooms are very clean. Even better than Cititel Penang. All is under RM200 budget.