This is what my kids' bath towels used to look like. (Actually, I should have left a couple of the towels on the floor!)
I saw this fantastic idea somewhere online. . . and once I was ready to do it, I couldn't remember where it was at all. So, I kind of made up what I thought it was.
I got some plain white ribbon at Wal-Mart (you can use cuter. . . I just couldn't find any that would match all of the colors of towels that I have). It is about an inch wide.
I measured it out 10 inches and cut.
I folded and ironed down each edge about 1/4 inch.
I looped the ribbon around (like so) and pinned it to the center of the towel.
(To find the center, I folded the towel in half and marked it with the pin)
Then, I sewed the square where the ribbon ends met together and then an X in the middle, just for fun because it looks nicer.
Ta da! Now my kids have no excuses when there towels are on the floor instead of on their hooks! :)