Yes, that is what I do. There's a tutorial on Emblibrary (and that's the place to go for a lot of questions, I think).

Janet, I agree with Mops post that Embroidery Library has many great tutorials. I, personally, do not hoop thick towels, but after hooping the stabilizer, just spray a bit of K2000 adhesive spray to back of area to be stitched, then align/place towel onto the hooped stabilizer. Many use tear-a-way stabilizer for towels, but I find that cut-a-way keeps the design looking nicer longer without curling after repeated washings. Just my opinion. Good luck.
Angel

I never hoop towels, because they are thick one can easily break a hoop or ruin the thread of the screw. I hoop fairly thick tearaway, use a tiny bit of spray adhesive (just to hold in place), stick towel to tearaway. Put on machine, float a piece of washaway on top and baste - so all three layers are held together. We all have our own ways which works for the individual. Good luck and let us know how it goes. I am about to post some towels I did this morning. Sarah.