I've completed another guest towel. I chose a different edging for this one. The edging on the first one is nice enough, but the dots of contrasting color are formed with bobbles that tend to pop in and out of the slip-stitches surrounding them, making a less-than-ideal fabric for hand drying. Cute to look at, but not totally practical.
This second version has a variation of a dot slip-stitch edging, slightly modified to make it lie flatter. I also had to use a different main color, since I didn't have any of the white Pakucho cotton left from the first towel. This color is "avocado", really more gray than green.
The Pakucho and the Blue Sky organic cotton both produce an exceptionally soft towel. I'm not sure that knitted hand towels are as good as the standard terrycloth ones. However, they work well as a guest towel, if a unique look is wanted.
The Blue Sky cotton is very loosely spun, and thus is exceptionally soft. This may mean that it won't wear well--another reason to use it for guest towels. The colors are pretty and may last longer without fading or pilling if they are washed less often than hand towels are usually.