The storm grew back into a marginal hurricane today, but the US National Hurricane Centre said it was likely to strengthen only slightly before fading back to tropical storm force by Wednesday which brushing past the Puerto Vallarta region.
The storm was centred about 140 kilometres southwest of the port city of Lazaro Cardenas around midday today with top sustained winds of 120 kph, the Hurricane Centre said.
The storm was moving west-northwest about 9 kph.
Workers cleared away hammocks and lounge chairs from beachside hotels and cafes.
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Jonathan Capote, spokesman for Guerrero state's Civil Protection agency, said no serious damage had been reported and only one injury was known, someone who fell from a fence.
"Aside from a few fallen billboards and trees, we haven't had any damage," he said.
Out in the sea, two surfers braved the dangerous conditions to ride the big crashing waves.
"It's impressive. It's very strong," he said. "There are launches turned over, fallen cables."
Officials said schools would be closed today and urged residents to stay inside their homes. State authorities said 507 shelters, including 98 in Acapulco, had been prepared along Guerrero's coast.
Rain accumulations of 15 to 25 centimetres were possible in southwestern Mexico, with a chance for up to 37 centimetres in some areas, according to the hurricane centre.