Hughes was last week confirmed as Roy Hodgson's successor at Craven Cottage, signing a two-year contract.
Fulham turned to the former Manchester City and Blackburn boss after a move for number one target Martin Jol fell through.
Hughes said: "I made the decision that this is the right club for me at this time. It feels a good fit. The attraction obviously, is the opportunity to get back into work. I needed to get back to work. The situation with Fulham was maybe the perception I had of Fulham's ambitions."
Hughes had been out of work since being controversially sacked by Manchester City last season, with the club well placed to finish in the top four of the Barclays Premier League.
He added: "Obviously, I was disappointed because I felt I was doing a good job, given the circumstances. I think no-one else could've done as good a job as I did, given the circumstances. I felt we were fully on track with the expectations of the owners."