What are the best places to stay in Penang near the Thai embassy?

Hey Jam.... the Consulate is in a residential area that isn't convenient to stay near or get to. It's not far but, if you stay out in that area you're going to find food and entertainment options are lacking. Bus is pretty good in Penang but, not good for going/coming from the consulate. You're better off just staying in the more popular area where you can enjoy the food and markets and either pay a service (Jim's is highly recommended) to do the visa run for you or take a taxi. You'll find the price of Jim's service is cheaper than taxi's both ways twice. If you do go to the consulate, make sure you bring Riggit for the visa fee. If you bring Thai Baht they will charge a hefty conversion fee. Good luck!

I stayed at the Merchant Hotel recently in Georgetown. Clean and well priced. Ask for a room with a winfow. I used Grab taxis to get about.

I stayed at 1926 Heritage Hotel which is seven minute taxi ride from Consulate. 18 Ringgit if booked through hotel. Only 13 from Consulate back to hotel so obviously the hotel gets its cut each time. Nothing special. Has a pool but didn't use it. Friendly staff. Rooms a bit poky with eight channels of crummy Malay tv. Corridors span out like Strangeways prison in Manchester. Breakfast included but basic. Superb coffee mind. Very echoey and I imagine noisy at weekends. Two night stay required for visa so cost 1,000 B per night. Nothing of note roundabout. All touristy spots are in Georgetown proper. I think if I went again I'd stay more centrally in Georgetown and take the hit on more expensive taxis to from Consulate which are around 40 Ringgit. Food and drinks considerably more expensive than Thailand. One way road system makes traffic flow very smooth. And of course no language barrier. I asked a local security guard directions to money exchange on Burma Rd. He looked up from his paper and replied in Queen's English pronunciation,'So exactly where would you like to go sir?'. Can't imagine any yam in Bangkok have the same eloquent response.

Not sure where the embassy is but the G Hotel is the best place I have stayed at there.