The Han Chow Hotel and Cafe has been going for a lot longer than I have been going to Penang, this is on Chulia Street up near the Penang Street intersection.
They have rooms starting at 28 Ringgit per night, the place seems clean enough but I have never seen the owner smile, rooms maybe a bit noisy as it is right on the main road and not to far from the Mosque on Leith Street, I think they kick off about 6am.
The food is okish, they do some bland sandwiches, but also do some good western stuff including most importantly PIZZA
For coffee they use the sweetened tinned milk though and I don't like that.
Penang Visa Run Page 
Pretty bland toasted brown bread with a cheese slice and a couple of slices of tomato.
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