My mom gave me this idea on storing tablecloths: hang them up on hangers! She keeps hers in her basement near her washer and dryer. As soon as they come out of the dryer, they go on hangers to avoid wrinkles.
I keep mine in my guest room closet. In the past, I've used an entry closet. Anywhere where you have a little extra closet space or space for a hanging rod can work. Stuffing them into drawers just creates wrinkles, and ironing is not my idea of a good time!
More on storing linens: