Historic resources are often a matter of great pride to local communities. At the same time, they are seen as a benefit for any town or city wishing to grow or revitalise its local economy. The growing number of heritage buildings being conserved in George Town, Penang, Malaysia indicates increasing appreciation of heritage values. In many cases, this has led to the commodification of the historic environment and its history, into a form of tourism product. The increasing number of boutique hotels in George Town had contributed to distinctiveness of lodging accommodation and serve as tourism attractions. A number of recent studies focus on the conception between authenticity and commodification in various aspects of heritage uses. However, little attention has been given to the notion of boutique hotels as a heritage commodification product. First, the article explores the concept of boutique hotels features in heritage city. Secondly, a discussion on a model of built heritage commodification of boutique hotel in heritage city. A semi structured interview with boutique hotel hoteliers in George Town, Penang was conducted. The findings revealed historical resources such as heritage premises, antiques furniture and architectural design are widely commodified as heritage product. The branding of World Heritage Site global recognition and the rare experience market provide the platform for tangible and intangible values to be commodified for tourism product. The implication of the built commodification for tourism may cause the loss of authenticity of built heritage functionality. However, the attempt to commodify of past survival of built heritage may prolong the sustainability of heritage values as well as revitalise the heritage city.