We have stayed at both the Merlin Beach and the Holiday Inn Busakorn wing... for me personally the Busakorn wins hands down. At the Merlin we stayed in deluxe and direct pool access and they were very nice (our pool access room was smaller than the deluxe) We found Merlin Beach was out the way and you had to get a tut tut every time you wanted to go out.... there is no haggling with the drivers, they have a set rate and are unbending. The hotel bus down to Patong is always packed (it doubles up as the staff personell carrier) and only runs at certain times of the day. When we stayed there, there was only one restaurant up the hill and across the road... this was destroyed in the Tsunami so whether it's up and running again I don't know.
At the Holiday Inn you step out of the foyer and there are hundreds of shops and restaurants to choose from and you are spoilt for choice. Yet inside the hotel you would never know it was there. You are far enough away from the Bangla Road scene for it not to effect you. There are a lot of repeat guests at the Busakorn... their rooms are lovely and exactly like their website. We have booked to return for our 4th visit in October direct with the hotel. Just waiting for Thai's Airways prices to come out then I'll be set like a jelly.
Cheers Geri