Hi,
Please read my review listed on the link below. We also stayed at the Katathani and if you look at my postings, you will find a description about it, as well as the Merlin Beach Resort. I think that most people are very happy with the Holiday Inn although it looked very crowded the last time I saw it, but it is right in the middle of Patong, so unlike the Merlin Beach Resort, you won't have to travel by tuktuk every time you want to leave the hotel. Look up Twin Palms Resort at Surin it is magical and the beach leaves Patong for dead. The surrounding restaurants are fantastic and it will take you 15 minutes by car to get into Patong. The travel from Kata is a bit longer probably about 20 - 25 minutes.
Best Wishes
Michelle
Patong: Merlin Beach Resort - Traveler Reviews - Merlin Beach Resort full of Yobbos - TripAdvisor