i put a little less than 1/4 inch hem around the sides. then i added a final 1/4 inch hem at the bottom of the handle just to be secure.
now, putting the hems was hard for me because the towel + handle was very thick. i had to rip out many hems because the thread kept gathering underneath the backside of the towel. i finally changed the setting for the one hem. if you notice, there are two different hems when sewing the towel to the hanger.
then, the button hole came. i folded the loop part down to see where the button would go. then i cut a slit. around 