I have used this idea in the past for my hognoses. I didn't make the towels/cloth moist though, I just folded them up and the snakes seemed to enjoy hiding in them over more natural hides such as half-logs and rocks. I have seen this with corns, kings, water snakes, ribbon snakes, and ring necks too. They all seem to prefer some spot or another with cloth/towel with or without it being moist.

I don't think its a temp thing either because I keep my temps are healthy levels for each of my snakes.