I got back from Phuket about a week or so ago and I stayed at the Patong Merlin. They are only doing 1 building and it was all internal. You would never know they were going on until you walk past them and see the guys working in there or sitting on the balcony having a break.
The renos were not a problem. I stayed in Building 2 with a Pool View Room on the 3rd floor and it was great, I definately got fit going up the stairs. There are lifts but the are in Building 5 and the rooms that are above the lobby.
You will Love it there with 3 pools you'll always get a spot.
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Cheers Denise
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