In order to make a hooded towel, you need the following things:
One large bath towel of any color.
One hand towel of any color.
Fabric for letters – It can be anything that you are comfortable with. Some use fleece and it does pill, but that is not a problem as it does not fray.
Scissors, sewing machine and pins.
Double bias tape and a ric-rac.
Cut the hand towel into half
Cut the hand towel into half first, before laying the bath towel on the floor and placing one of the pieces (of the hand towel) on the bath towel. The cut side should be up so that sewn end of the one can be sewn to the bath towel. You do not need to fold it over the edge.
Pin the cut piece to the bath towel and sew it. It is recommended to sew them on top of each other, instead of joining the sides together.
Make the hood
By pairing the cut piece together, fold the hood together in half and sew it. It is not a problem even if the seams are apparent and fray a little after washing because this is the inside part, which will be covered by the head.
Add some extras
Just to make it look more presentable, you may add a name or any shape to the back of the hooded towel. Do not worry even if the appliqué comes out a little. You can cut out the shape/letters from the fabric and stitch them.