Most likely the render is reasonably sound, tap it and any hollow sound is a worry, solid is fine. You should be ok to patch the lower render and tile. You should try and remove some paint usually scratching the surface so the tile glue has something other than paint to grip to. Try to avoid tiling against naked brick, they are often a bit uneven and any mortar line cracks are likely to also crack your tiles.
Doesn’t matter if the mortar has an odd hollow spot and yes an SDS will easily remove the render, preferably something like an 18v model is ample.