I've collected an assortment of cloth napkins over the years. We keep most of them in a drawer in the kitchen, but we do have a wooden napkin holder my spouse made that we use to keep some accessible on the kitchen table (when it gets low we replenish it with more from the drawer). Under the sink we keep a small trash can that we've converted to a "laundry basket" for dirty kitchen linens - napkins, dish towels, dish cloths, etc. We wash the contents of that basket along with with the contents of our general towel basket (bath towels, hand towels, towels we used to dry the dog after she was out in the rain, etc.) in a washing machine on a the "energy saving" setting with laundry detergent. Usually we run the washing machine on cold unless there's something particularly greasy on something.