This is the kind of hand towel that is best for making the hood for the towels. Notice there is no extra ribbing on the towel. That way you can do a nice monogram or design at the edge and the ribbing is not in the way. Just a nicer look. This is the Mainstays True Colors towel. The only problem is that they don't make a soft pink or soft blue so I mainly use white.
This is a baby pink hand towel from Target which is pretty but the ribbing gets in the way when you embroidered design. However, the opposite end is plain and you can get 1 good hood from these towels.
Completed towel with a smooth hood and there is not any ribbing in the way.
After I embroider my design close to the bottom of the hand towel and sew on ribbon, I put right sides together and stitch on the wrong side curving toward the end so that I have a rounded hood. Then I put a zigzag stitch on the seam so that it doesn't ravel.
Then at the center of the right side of the towel I put the center right side of my hood. Then I stitch the hood and towel together. I wouldn't dare use my new sewing machine. I use my almost 30 year old Singer. It is sturdy and will sew anything. Since you are sewing through double thicknesses of terry and over even thicker ribbing it's pretty rough on the machine.
But that's all there is to it! I will gladly share pictures if you need more help.