For the hall bathroom, I have decided to not use cloth hand towels. The reason for this is to prevent germs. And I have this "ick" thing about drying my hands on a towel that is still wet from another's use. I believe I found the towel rack that will be suitable for the bathroom. (I bought a cheapo, plastic wall mount, but really hesitated to use - everything else in the room has been so carefully chosen to reflect a bygone era. Plastic-y things would fall short.)
This wall mount is from SimpleHuman at http://www.simplehuman.com/index1.html
The description says: To maximize space, the wall mount paper towel holder can be mounted to a cabinet or a wall in any position. The quick release knob detaches with a light squeeze of the buttons when changing the roll. A tension spring prevents unraveling and creates slight resistance to allow pulling off one paper towel at a time. The extra-strong mounting bracket provides superior durability.