Pick up these crates at Michaels for about $4. Stain or paint. Add a pair of shelve racks from Home Depot and Wa La...you have an attractive storage unit for towels or anything else that requires easy access. (note: Reinforce the crate by securing with screws through the wood into the wall.)
Over time, towels build up detergent and fabric softener, leaving them unable to absorb as much water and smelly. Recharge them by washing them once with hot water and 1cup vinegar, then a 2nd time with hot water and half cup baking soda. This strips the residue and leaves them fresh and able to absorb more water again. Works like a charm!