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.