Try searching the Forum for this topic, there have been several threads over the last 2 months or so on this very topic. Check out the "Read Me" thread (linked below) for tips on searching.

I hang dishtowels on the freezer drawer handle (I have a bottom drawer/french door refrigerator). It's close to both the Prep Sink and Cleanup Sink. Sometimes, I'll find one on the Warming Drawer handle as well. Where we do not hang them is on the oven doors (b/c they're front and center when coming in from the front door or looking in the sidelight!) and the DW door (b/c when it's opened, the towel would drag on the floor).

Here are some older threads that probably won't be found when searching on the Forum itself (they probably will come up if you to a "Google" search).

Thread: Where and how do you hang your cloth dishtowels?

Thread: OT. Kitchen-towel-hanging-on-the-oven-door-survey...

Thread: Where do you hang your cloth hand towels?

Thread: What to do with the Dish Towel?!?!

Related:

Thread: Where to store that wet dishrag? [From the Cleaning Forum]

Thread: where do you keep kitchen cloths? [From the Organization Forum]

Thread: cloth for washing dishes [From the Cleaning Forum]

Thread: Dish cloth or sponge? And where do you store it between uses?

Here is a link that might be useful: Read Me If You're New To GW Kitchens!

Thanks buehl, I'll read through those. I actually did do a search but with the terms "towel holder" and didn't come up with anything useful.

Try "towel" and "hang"...

And search "towel pig" if you want to laugh!