"The centre of the hurricane will be moving very near or over the coast of Mexico in the hurricane warning area overnight ... and moving away from the coast by late Tuesday," The National Hurricane Centre said in a statement.
Heavy rains and strong winds pounded resorts and beaches on Mexico's Pacific coast, flooding streets as authorities closed popular tourist ports in the storm's path.
The US National Hurricane Centre said Beatriz's winds grew to a hurricane-force 120km/h and the storm would move near or over the coast of Mexico overnight.
A hurricane warning was issued on Monday night from the resort city of Zihuatanejo northwest to Cabo Corrientes. Watches and tropical storm warnings went out for other parts of the coast. Ports were closed in Acapulco, Manzanillo and Zihuatanejo.
Beatriz was located about 140km southeast of Manzanillo late on Monday night and was moving northwest at 19km/h.
A light rain was falling in Manzanillo, where the hurricane was expected to arrive early on Tuesday, but people mostly went about their business, waiting for buses and shuttling to and from work.
The eye of the storm is expected to pass within 60km of the beach town on Tuesday.
Manzanillo authorities sent out recommendations to hotels to tell guests not to go to the beach. But many tourists were hanging out at the beach anyway on Monday afternoon.
"There's a lot of wind," said Carmen Lopez, a 40-year-old Mexican tourist vacationing in Manzanillo with about 15 family members from Guadalajara, three hours' drive inland.
"I'm kind of scared ... but we're staying here in the hotel for our vacation."In Acapulco, the ports were closed.